Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹30 million on IndusInd Bank Limited on December 12, 2017. The penalty was levied under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949 for non-compliance with RBI directions on Income Recognition and Asset Classification (IRAC) norms and contravention of regulatory restrictions relating to non-fund based (NFB) facilities. RBI said a statutory inspection for the bank's financial position as of March 31, 2016 revealed violations in the assessment of NPAs and extension of NFB facilities, leading to a show-cause notice dated August 10, 2017 and subsequent confirmation of the charges after considering the bank's reply and hearing submissions.