The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 8.30 lakh on Karur Vysya Bank Limited for non-compliance with certain directions issued by RBI on ‘Loan System for Delivery of Bank Credit’.
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| RBI Imposes Rs 8.3 lakh Penalty on Karur Vysya Bank |
RBI Imposes Rs8.3 lakh Penalty on Karur Vysya Bank
The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 8.30 lakh (Rupees Eight Lakh Thirty Thousand only) on Karur Vysya Bank Limited for non-compliance with certain directions issued by RBI on ‘Loan System for Delivery of Bank Credit’.
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This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.
Apart from this, the Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 27.30 lakh on Federal Bank.
RBI Imposes Penalty on Karur Vysya Bank: Background
The Statutory Inspection for Supervisory Evaluation (ISE 2023) of the bank was conducted by RBI with reference to its financial position as on March 31, 2023.
RBI found that the following charge against the bank was sustained, warranting imposition of monetary penalty.
The bank failed to ensure that the outstanding ‘loan component’ was at least the specified percentage of the sanctioned fund based working capital limit for certain borrowers.
Reserve Bank of India (RBI)
The Reserve Bank of India was established on April 1, 1935 according to the provisions of the Reserve Bank of India Act, 1934. The headquarters of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937.
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Initially the bank was privately owned, but since nationalization in 1949 it is fully owned by the Government of India.
Governor of RBI
The current Governor of the Reserve Bank of India is Sanjay Malhotra. He replaced Shaktikanta Das as the governor.
Deputy Governor of RBI
The 4 Deputy Governors are appointed in the Reserve Bank of India (RBI), who are as follows.
- M.D. Patra
- M. Rajeshwar Rao
- T. Rabi Sankar
- Swaminathan J
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Static Current Affairs related to Karur Vysya Bank for upcoming exams
- Formation: 1916
- Headquarters: Karur, Tamil Nadu
- Number of employees: 9,085 (2024)
- Chairperson: Dr. Meena Hemchandra
- MD & CEO: Ramesh Babu
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