Reserve Bank of India (RBI) imposes fine $IndusInd Bank was fined Rs 27 lakh for non-compliance with norms. The bank was fined for opening savings accounts with unqualified entities.
The total amount of fines is $A fine of Rs 2.73 million was imposed for violation of certain provisions of the Reserve Bank of India (Deposit Rates) Order, 2016.
“The Reserve Bank of India (RBI) has issued an order on December 18, 2024 imposing $IndusInd Bank Limited (Bank) has been fined Rs 27.30 lakh (Rs 27 lakh and Rs 30,000 only) for non-compliance with certain provisions of the Reserve Bank of India (Deposit Rates) Order, 2016,” the central bank said on November 20 said in a statement Friday.
The Reserve Bank of India conducted a regulatory statutory inspection based on the financial position of IndusInd Bank as on March 31, 2023.
Based on the findings, the RBI found non-compliance with certain norms. Thereafter, the central bank issued a notice to the bank asking it to show cause as to why it should not be fined for failure to comply with the directions laid down by the RBI.
IndusInd Bank responded to the notice and made its submissions, including oral submissions, at a personal hearing.
The central bank alleged that UndusInd Bank opened savings accounts for ineligible entities.
“The Reserve Bank of India has found that, inter alia, charges related to opening of certain savings deposit accounts in the name of non-qualified entities continue to exist, necessitating the imposition of a penalty,” the statement read.
The RBI also clarified that the penalty is to comply with regulatory requirements and will not affect the validity of any transactions carried out by the bank with its customers.
IndusInd Bank’s consolidated net profit fell 39.5% year-on-year in the July-September quarter of this fiscal year $1,331.29 Crores Rs. $According to a Mint report on October 24, it was 2,202.16 in the same period last year.
Net interest income (NII) is $5,347 crore, up 5% year-on-year, while the net interest margin (NIM) was 4.08% as compared to 4.29% in the same period last year.