The Lakshmi Vilas Bank Ltd

RBI superseded the Board of Directors of The Lakshmi Vilas Bank Ltd. for 30 days and appointed an Administrator. The move was taken due to serious deterioration in the bank's financial position.

The bank's board was removed and administrative control shifted to the appointed Administrator for the stated 30-day period. This affects the bank's governance and management, with the action aimed at safeguarding depositors while RBI oversees the institution.

• Sub-section (1) of Section 36 A C A of the Banking Regulation Act 1949
• Sub-section (2) of Section 36 A C A of the Act

The Lakshmi Vilas Bank was placed under a 30-day moratorium by the Central Government on RBI’s request. RBI cited persistent losses, weak capital, liquidity stress, governance issues, and failure of revival efforts.

For the moratorium period, the bank’s normal operations are restricted under the statutory resolution framework, with RBI and the Central Government working toward an amalgamation scheme before expiry. Depositors are expressly assured that their interests will be protected, and the action is intended to prevent further hardship while stabilising the institution.

• section 45 of the Banking Regulation Act, 1949
• section 35 A of the Act ibid.

RBI imposed a ₹1 crore penalty on The Lakshmi Vilas Bank Ltd. for non-compliance with IRAC norms. The action followed a statutory inspection and show-cause process.

The bank must absorb the monetary penalty, and the order serves as an enforcement action for past regulatory non-compliance. The release does not describe any operational restriction on customers or ongoing banking activities, but it signals continued regulatory scrutiny of the bank’s compliance with IRAC norms.

• Section 47A(1)(c)
• Section 46(4)(i) of the Banking Regulation Act, 1949

RBI imposed a ₹30 million penalty on Lakshmi Vilas Bank for multiple compliance violations. The breaches related to current accounts, bill discounting to non-constituents and walk-in customers, and KYC norms.

Lakshmi Vilas Bank must absorb the financial penalty; the release does not impose any new operational restriction, but it underscores that the bank’s practices in current accounts, bill discounting and KYC were found non-compliant. No direct forward-looking restriction on customers is stated in the release.

• Section 47(A)(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949

RBI imposed monetary penalties on 22 banks for various KYC/AML and related compliance violations. The release also says seven other banks were only cautioned, not fined.

Each of the 22 named banks must bear the monetary penalty and face the compliance finding recorded by RBI. The action does not impose an ongoing operational restriction, but it signals supervisory concerns over KYC/AML and transaction-monitoring controls.

• Section 47(A)(1)(c) of the Banking Regulation Act, 1949
• Section 46(4)(i) of the Banking Regulation Act, 1949

This RBI action affected 22 entities. This profile is linked as bulk member.