RBI fines IndusInd Bank ₹27 lakh over non-compliance | Company Business News
The Reserve Bank of India (RBI) imposes a penalty of ₹27 lakh on IndusInd Bank for not complying with norms. The Bank was fined for opening savings accounts for ineligible entities.
The total fine amounts to ₹27.3 lakhs for violating certain provisions of Reserve Bank of India (Interest Rate on Deposits) Directions, 2016.
“The Reserve Bank of India (RBI) has, by an order dated December 18, 2024, imposed a monetary penalty of ₹27.30 lakh (Rupees Twenty-Seven Lakh and Thirty Thousand only) on IndusInd Bank Ltd. (the bank) for non-compliance with certain provisions of ‘Reserve Bank of India (Interest Rate on Deposits) Directions, 2016’,”the central bank said in statement on Friday, November 20.
The RBI conducted the statutory inspection for Supervisory of IndusInd Bank according to its financial position on March 31, 2023.
On the basis of its findings, the RBI discovered non-compliance with certain norms. Following this, the central bank sent a notice to the bank asking it to show cause on why a penalty should not be charged for its failure to follow the directions mandated by RBI.
After IndusInd Banks’s reply to the notice, submissions, including oral submissions, were made during a personal hearing.
The central bank has claimed that the UndusInd Bank has opened savings accounts for ineligible entities.
“RBI 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 statement said.
The RBI also clarified that the penalty is imposed for regulatory compliance and does not impact the validity of any transactions the bank has entered with its customers.
The IndusInd Bank, in the July-September quarter of the current financial year, has reported a 39.5 per cent year-on-year (YoY) decline in consolidated net profit at ₹1,331.29 crore from ₹2,202.16 in the same quarter the previous year, as Mint reported on October 24.
Net interest income (NII) was at ₹5,347 crore, an increase of 5 per cent YoY, whereas the net interest margin (NIM) was at 4.08 per cent from 4.29 per cent in the same quarter previous year.
