State Bank of Hyderabad

RBI conducted scrutiny of the loan and current accounts of M/s. Deccan Chronicle Holdings Ltd. in certain branches of 12 banks in late 2013. Following show-cause notices issued in March 2014, and after considering the banks' written replies and, for some banks, personal submissions before the Committee of Executive Directors, RBI concluded that some violations were substantiated and imposed monetary penalties under Section 47A(1) read with Section 46(4)(i) of the Banking Regulation Act, 1949. The release states the penalties were based on violations of RBI instructions/directions/guidelines issued from time to time and clarifies that the action does not pronounce on the validity of transactions or agreements with the borrower.

Each named bank must bear the imposed penalty; there is no indication of an operational restriction or cancellation. The action signals regulatory non-compliance tied to lending/account handling in relation to the borrower, but the release says it does not determine the validity of any transaction or agreement between the banks and the borrower.