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.

Comments

 

Other News

The health sector research we are not doing

Some neglect is loud. This kind is quiet. It sits in research never commissioned, data never collected, questions never asked. In South Asia, that quiet has let the region’s worst health problems stay understudied, underfunded, and out of sight of those who could act.  

Study flags accessibility and last-mile challenges on Mumbai Metro Aqua Line

Mumbai Metro Line 3 (Aqua Line), the city`s first fully underground metro corridor and one of its largest public transport investments, represents a major engineering achievement and has been widely welcomed by commuters. However, the overall commuter experience continues to be constrained by accessibili

Centre intensifies preparedness as El Niño threat looms

Amid uncertainty in the southwest monsoon due to the potential impact of El Niño, the government is addressing the situation with comprehensive preparedness, a clear strategy, and strong ground-level action. While challenges remain, the entire system has been activated in advance and is working proa

India is crossing a climate threshold

On June 28, Delhi recorded a maximum temperature of 41.3°C, four degrees above the seasonal normal. But the “feels like” temperature, which factors in humidity, showed more than 51°C. What the body experienced was very different from what the thermometer recorded.  India`

The Geography of India’s inflation

India today finds itself in an unusual position. At a time when geopolitical conflicts, trade fragmentation, and supply-chain disruptions are reshaping the global economy, the country`s macroeconomic fundamentals remain relatively upwards. Growth remains among the highest in the world, inflation has larg

How to listen to the great storytellers that the trees are

The Trees of My Country: A Natural History of India in 50 Trees By T. R. Shankar Raman, with illustrations by Manali Patil Aleph Book Company, 284 pages, Rs 1,499  





Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter