Karur Vysya Bank is a bank headquartered in Karur, Tamil Nadu with branches in many parts of India. It is noteworthy that one of the banks has opened more branches especially in rural areas. In this situation, the information that the Reserve Bank of India has imposed a penalty of Rs 30 lakh on Karur Vysya Bank has created a stir.
It is known that the Reserve Bank of India is monitoring whether all banks are complying with the norms and imposing fines when the bank management is lax.
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The Reserve Bank of India, which has already fined several banks including cooperative banks in the past few weeks, has now fined Karur Vysya Bank as well. Karur Vysya Bank was investigated for alleged non-compliance with RBI regulations.
It is said that the Reserve Bank, which inspected the bank from February 21 last year to March 4 this year, concluded that some accounts were fraudulent but failed to report it to the Reserve Bank. The Reserve Bank of India has imposed a penalty of Rs 30 lakh on Karur Vysya Bank for violating this regulation.
It is said that this penalty has been imposed only after an explanation was sought from the Karur Vysya Bank management but at the same time there is no problem with the bank customers’ money.