Published: 20 Dec 2024, 06:51 PM IST
The Reserve Bank of India (RBI) has imposed a penalty of ₹27.3 lakh on IndusInd Bank Ltd. for failing to comply with specific provisions of the Reserve Bank of India (Interest Rate on Deposits) Directions, 2016.
The penalty stems from findings during a statutory inspection of the bank’s financial position as of March 31, 2023. The RBI discovered that the bank had opened savings accounts for ineligible entities, violating regulatory norms.
In a statement dated December 18, 2024, the RBI clarified:
“The penalty is imposed for non-compliance with regulatory directions and does not impact the validity of any transactions the bank has entered into with its customers.”
Following the inspection, IndusInd Bank was issued a show-cause notice and was given an opportunity to present its case through written and oral submissions. However, the RBI concluded that the violations warranted the imposition of a monetary penalty.
This fine highlights the RBI’s commitment to ensuring strict adherence to regulatory standards within the banking sector.
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