RBI imposes Rs 30 million penalty on Lakshmi Vilas Bank

The action is based on deficiencies in regulatory compliance

GN Bureau | January 7, 2017

#Reserve Bank of India   #Banking  

The Reserve Bank of India has imposed a monetary penalty of Rs 30 million on Lakshmi Vilas Bank Ltd. (LVB) for contravention of instructions relating to opening and operation of current accounts, extending bill discounting facilities to non-constituents and walk-in customers and non-adherence to KYC norms.

“This action 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 and its customers,” said a press release.

RBI had received a complaint regarding irregularities in bill discounting/purchasing at one of the bank’s branches. RBI carried out an examination of the irregularities. Explanation from the bank was also obtained by RBI. On the basis of the examination of RBI and explanation furnished by the bank, a show cause notice was issued to the bank for violation of certain regulations and instructions issued by RBI.

After considering the bank’s reply, as also, personal submissions, information submitted and documents furnished, the RBI came to the conclusion that these violations were substantiated and warranted imposition of monetary penalty.



Other News

Cabinet approves national health protection mission

The union cabinet on Thursday approved the centrally sponsored national health protection mission (NHPM) having central sector component under Ayushman Bharat, anchored in the ministry of health and family welfare. Minister JP Nadda termed the NHPM as a major step towards universal health coverag

Environment min reviews measures to combat air pollution in Delhi-NCR

The ministry of environment, forest and climate change held a meeting on Wednesday to review mitigation measures to combat air pollution in Delhi-NCR. The review meeting was chaired by secretary CK Mishra.   The ministry strictly directed the government agencies like PWD, DDA, DM

Is deleting Facebook account a solution to the privacy issue?

Is deleting Facebook account a solution to the privacy issue?

GIS mapping of railway assets

All railways assets are to be mapped and these will be subsequently used to develop Indian Railways’ GIS portal, authorities said on Thursday. Railways have large number of assets including land assets that need to be effectively monitored, managed and maintained.  As railway oper

Aadhaar data not misused by private firms: KJ Alphons

There has been no instance which has been reported where Aadhaar data has been misused by private companies, parliament was informed. It was found that approximately 210 websites of central government, state government departments and some educational institutes were displaying the list of b

Constitution has been amended 101 times

The constitution of India has been amended 101 times so far, parliament was informed. Union minister PP Chaudhary said that there is no proposal to review the working of the constitution by a high power commission. The National Commission to Review the Working of the Constitution was

Current Issue

Current Issue


CM Nitish’s convoy attacked in Buxar


Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter