RBI imposes Rs5 crore penalty on South Indian Bank for flouting rules

Mumbai: Reserve Bank of India (RBI) has imposed a Rs5 crore penalty on South Indian Bank for not following its rules on asset classification, know-you-customers (KYC) and treasury functioning, the central bank said in a release on Friday.

“This action 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 with its customers,” the RBI said.

South Indian Bank had reported divergence in reporting of gross non-performing assets for fiscal 2017. It said that gross bad loans reported as on 31 March 2017 were Rs8.39 crore lower than the assessment of the RBI.