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The Reserve Bank of India (RBI) has imposed a penalty of Rs.5 crore on South Indian Bank, for violation of bad loan classification, know-your-customer (KYC) guidelines, treasury functions and other non-compliance’s.
The RBI said it has imposed, “..by an order dated May 14, 2018, a monetary penalty of Rs.50 million on South Indian Bank Limited (the bank) for non-compliance with the directions issued by RBI on Income Recognition and Asset Classification (IRAC) norms, Know Your Customer (KYC) norms and treasury function and for deficiencies in its compliance function and compliance culture.”
Further, RBI stated that, this action is based on deficiencies in regulatory compliances and is not intended to pronounce upon the validity of any transaction or agreement the bank has entered into with customers.
