RBI imposed a High penalty on IndusInd bank BANK NEWS
RBI decided to impose a monetary penalty on the bank, to the extent of non-compliance with the aforesaid directions
IndusInd Bank logo (PSU Connect)
New Delhi: The Reserve bank of India has imposed the high penalty on the IndusInd Bank of Rs. 4.5 crores (Rupees Four crore and fifty lakhs only) on October 16, 2020 for non-compliance with certain provisions of directions issued by RBI on ‘Exposure Norms’, ‘Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances’ etc., mentioned in the press release issued by the RBI.
This penalty has been imposed in exercise of powers vested in RBI under the Banking Regulation Act, 1949. It is also mentioned by the RBI that, “This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.”
In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for its failure to comply with the directions issued by RBI. After considering the bank’s reply to the notice, oral submissions made during the personal hearing and examination of additional submissions, RBI decided to impose a monetary penalty on the bank, to the extent of non-compliance with the aforesaid directions.
Posted Date : 17-10-20
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