Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹50 million on South Indian Bank Limited by order dated May 14, 2018. The penalty was levied for non-compliance with RBI directions on Income Recognition and Asset Classification (IRAC) norms, Know Your Customer (KYC) norms, and treasury function, as well as deficiencies in the bank’s compliance function and compliance culture. RBI stated that the action was taken under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, based on regulatory compliance failures.