RBI imposes Rs 27.30 lakh penalty on IndusInd Bank

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

A penalty of Rs 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.

The RBI had conducted a statutory inspection for supervisory evaluation of the bank with reference to its financial position as of March 31, 2023, and had issued a notice to the private sector lender. After considering the reply of IndusInd Bank to the notice and additional submissions made by it, the RBI said it found, inter alia, that the charge pertaining to the opening of certain savings deposit accounts in the name of ineligible entities was sustained, warranting imposition of a monetary penalty. The RBI, however, added that the penalty is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transactions or agreements entered into by IndusInd Bank with its customers.