RBI Fines IndusInd Bank for Deposit Norm Violations

The Reserve Bank of India has imposed a penalty of Rs 27.30 lakh on IndusInd Bank for non-compliance with deposit interest rate norms. Following a supervisory evaluation of the bank's financial status as of March 31, 2023, the RBI cited violations involving savings deposit accounts for ineligible entities.

IndusInd Bank has been slapped with a fine of Rs 27.30 lakh by the Reserve Bank of India for failing to comply with specific provisions related to the 'interest rate on deposits'.

The penalty comes in the wake of a statutory inspection conducted for supervisory evaluation based on the bank's financial standing as of March 31, 2023. The inspection revealed that certain savings deposit accounts were opened for ineligible entities, leading to this financial repercussion.

The RBI clarified that this fine highlights deficiencies in regulatory adherence and does not reflect on the validity of any agreements or transactions between IndusInd Bank and its clients.

(With inputs from agencies.)