Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty on RBL Bank Limited by order dated September 27, 2021. RBI said the bank contravened section 28(h) of the RBI (Interest Rate on Deposits) Directions, 2016 and failed to comply with section 10A(2)(b) of the Banking Regulation Act, 1949 relating to board composition. The inspection also found that the bank had opened five savings deposit accounts in the name of a co-operative bank. RBI concluded the charges were substantiated after considering the bank’s reply and oral submissions.