RBI Penalties on SCDCC Bank and Karnataka Gramin Bank
Why in the news
RBI penalised two banks over lending and asset classification lapses, stressing governance and compliance.
Comparison
| Point | SCDCC Bank | Karnataka Gramin Bank |
|---|---|---|
| Fine | ₹5 lakh | ₹1 lakh |
| Lapse | Loans to directors, against Section 20 with Section 56 of the BR Act | Some loans not marked as NPAs |
| Basis | Section 47A(1)(c) with Sections 46(4)(i) and 56 | Prudential norms of 2001 and income recognition rules of 1996 |
Process for SCDCC
- Inspection by NABARD on the bank’s position at 31 March 2023.
- Show-cause notice, then review of written and oral replies.
Exam angle
- Act: Banking Regulation Act.
- Fines are corrective, supporting prudential regulation.