RBI imposes penalty on IndusInd Bank for regulatory compliance deficiencies

The RBI conducted an inspection of IndusInd Bank as of March 31, 2023, and issued a notice regarding certain savings deposit accounts.

A penalty of ₹27.30 lakh has been imposed on IndusInd Bank for non-compliance with certain provisions of norms related to 'interest rate on deposits', the Reserve Bank said on Friday.

For failing to comply with specific rules pertaining to "interest rate on deposits," IndusInd Bank has been fined ₹27.30 lakh by the Reserve Bank.(Hindustan Times)

The RBI had conducted a statutory inspection for supervisory evaluation of the bank with reference to its financial position as on March 31, 2023, and had issued a notice to the private sector lender.

After considering the reply of IndusInd Bank to the notice, additional submissions made by it, RBI said, it found, inter alia, that the charge pertaining to opening of certain savings deposit accounts in the name of ineligible entities was sustained, warranting imposition of monetary penalty.

The RBI, however, added the penalty is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transactions or agreement entered into by IndusInd Bank with its customers.