Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹30 million on Lakshmi Vilas Bank Ltd. under Section 47(A)(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949. RBI said the penalty followed an examination of irregularities in bill discounting/purchasing at one of the bank’s branches, after which a show-cause notice was issued and the bank’s reply and submissions were considered. The violations were found to involve instructions on opening and operating current accounts, extending bill discounting facilities to non-constituents and walk-in customers, and non-adherence to KYC norms.