Reserve Bank of India imposes monetary penalty on Karnataka Bank Ltd
The penalty has been imposed in the exercise of powers vested in RBI conferred under the provisions of section 47 A (1) (c) read with sections 46 (4) (i) of the Banking Regulation Act, 1949.
The Reserve Bank of India (RBI) has imposed a monetary penalty of ?59,10,000 (Rupees Fifty-Nine Lakh Ten Thousand only) on Karnataka Bank Ltd. (the bank) for non-compliance with certain directions issued by RBI on ‘Interest Rate on Deposits’ and ‘Prudential Norms on Income Recognition, Asset Classification and Provisioning on Advances’.
The penalty has been imposed in the exercise of powers vested in RBI conferred under the provisions of section 47 A (1) (c) read with sections 46 (4) (i) of the Banking Regulation Act, 1949.
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The Statutory Inspection for Supervisory Evaluation (ISE 2022) of the bank was conducted by RBI regarding its financial position as of March 31, 2022. The inspection has found that the bank had opened savings deposit accounts in the name of certain ineligible entities and failed to review and renew certain loan accounts within the prescribed period and yet did not classify these accounts as Non-Performing Assets.
The Private sector lender is based in Mangalore and is classified under A class Scheduled Commercial Bank.
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