Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 5 lakh on IDBI Ltd. under Section 47A(1)(b) of the Banking Regulation Act, 1949. RBI found that the bank had violated guidelines on opening of accounts, including joint accounts, KYC norms, and extant RBI guidelines on IPO financing. The bank was issued a show-cause notice, submitted a written response, and was given a personal hearing through its Chairman and Managing Director before RBI concluded that the violations were substantiated.