RBI imposes penalty of Rs 59.20 lakh on South Indian Bank

Reserve Bank of India (RBI) has imposed a penalty of Rs 59.20 lakh on South Indian Bank for non-compliance with certain directions on ‘interest rate on deposits’ and ‘customer service in banks’. A statutory inspection for supervisory evaluation of the bank was conducted by RBI with reference to its financial position as on March 31, 2023. 

Based on supervisory findings of non-compliance with RBI directions and related correspondence, a notice was issued to South Indian Bank. After considering the bank’s reply to the notice and oral submissions made during the personal hearing, RBI found that the charges against the bank were sustained, warranting imposition of monetary penalty.

South Indian Bank is considered one of the most proactive banks in India with a competent tech savvy team of professional at the core of services.