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The Reserve Bank of India has imposed a penalty of Rs 3 crore on Lakshmi Vilas Bank for contravention of instructions on opening and operation of current accounts, among other.
RBI has said that the penalty on the bank has been imposed 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.
However, RBI added that the action on 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 and its customers.”
