LVB fined Rs 1 cr, Syndicate Bank fined Rs 75 lakh by RBI for violating norms

Mumbai: The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1 crore on Lakshmi Vilas Bank for non-compliance with certain provisions of directions on Income Recognition and Asset Classification (IRAC) norms.

This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act 1949, the central bank said in a statement late on Monday.

The RBI also imposed a monetary penalty of Rs 75 lakh on Syndicate Bank for non-compliance with directions issued on Frauds Classification and Reporting, and Housing Sector: Innovative Housing Loan Products -- Upfront disbursal of housing loans.

"This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 51(1) of the Banking Regulation Act 1949 taking into account the failure of the bank to adhere to directions," it said in a statement.

The actions are based on deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with its customers, said the RBI in similar separate statements.

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