Money & Banking

RBI slaps total of ₹1.5-cr penalty on 12 banks in Deccan Chronicle Holdings case

Our Bureau Mumbai | Updated on November 25, 2017 Published on July 25, 2014

The Reserve Bank of India (RBI) has slapped a monetary penalty, ranging from Rs 5 to Rs 40 lakhs, on 12 banks including ICICI Bank, HDFC Bank, Axis Bank, Canara Bank and IDBI Bank, in the case relating to the loan and current accounts of the troubled Deccan Chronicle Holdings Ltd for violations of its instructions/directions/guidelines.

The central bank has imposed the maximum penalty on Rs 40 lakh on ICICI Bank; followed by Rs 15 lakh each on Axis Bank and IDBI Bank.

A penalty of Rs 10 lakh each has been imposed on Andhra Bank, Canara Bank, Corporation Bank, IndusInd Bank, Kotak Mahindra Bank, State Bank of Hyderabad and Yes Bank, the RBI said in a statement.

HDFC Bank and Ratnakar Bank have been slapped with a penalty of Rs 5 lakh each.

The Reserve Bank had carried out a scrutiny of the loan and current accounts of Deccan Chronicle Holdings Ltd., in certain branches of these banks in late 2013. Based on the findings of the scrutiny, the Reserve Bank issued show cause notices to these banks in March 2014, to which the individual banks submitted written replies.

“After considering the facts of each case and the individual bank’s reply, as also, the personal submissions etc., by some of the banks before its Committee of Executive Directors, the Reserve Bank came to the conclusion that some of the violations were substantiated and warranted imposition of monetary penalty,” the RBI said.

The central bank said its action to impose penalty is not intended to pronounce upon the validity of any transaction or agreement entered into between the concerned bank and the borrower.

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Published on July 25, 2014
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