Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹1 million on South Indian Bank Limited by order dated June 13, 2019. The penalty was for non-compliance with RBI directions on ‘Guarantees and Co-acceptances’, after examination found violations concerning non-payment of invoked bank guarantees. RBI proceeded under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, and concluded the charge was substantiated after considering the bank’s response and submissions.