RBI imposes Rs 5 crore penalty on South Indian Bank

The penalty has been imposed on the bank for non-compliance with the directions on Income Recognition and Asset Classification (IRAC) norms.

Published: 18th May 2018 07:31 PM  |   Last Updated: 18th May 2018 07:31 PM   |  A+A-


Image of RBI logo for representational purpose only. (Photo | Reuters)


MUMBAI: The Reserve Bank today said it has imposed a penalty of Rs 5 crore on South Indian Bank for non-compliance to its asset classification and Know Your Customer (KYC) norms, among others.

The penalty has been imposed on the bank for non-compliance with the directions "on Income Recognition and Asset Classification (IRAC) norms, KYC norms and treasury function and for deficiencies in its compliance function and compliance culture", the RBI said in a statement.

The action against the bank is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, it said.

Shares of the private sector lender closed at Rs 25.60 a share on BSE, down 2.66 per cent.

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

  • Krishna

    Only 5 Crores on a bank? Why suck a small fine?
    8 months ago reply
flipboard facebook twitter whatsapp