RBI imposed monetary Penalty on Andhra Bank

Current context: The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 25 lakh on Andhra Bank by an order dated 5th December 2019.

The penalty has been imposed for non-compliance with certain provisions of directions issued by RBI on:

Under the provisions of section 47 A (1) (c) read with section 46 (4) (i) and section 51 (1) of the Banking Regulation Act, 1949 RBI has been vested powers to impose the penalty.
Deficiencies in regulatory compliance of the bank were found in an examination of current accounts opened by two entities in Andhra Bank.
RBI came to the conclusion of imposing a monetary penalty after considering the reply from the bank and personal hearing as to why penalty should not be imposed for non-compliance with the directions.
Andhra Bank Founder: Bhogaraju Pattabhi Sitaramayya
Founded: 20 November 1923, Machilipatnam
Tagline: Where India Banks
Headquarter: Hyderabad