Case Brief
What Happened
RBI imposed a monetary penalty of ₹59 lakh on KEB Hana Bank by order dated May 12, 2022. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, for non-compliance with the RBI’s Interest Rate on Deposits Directions, 2016. RBI’s inspection found that the bank’s deposit interest rates were not consistent and transparent, the details were not available in the Core Banking System for supervisory review, and the rates offered were not uniform across customers and were discriminatory in nature. After a show-cause notice, the bank’s reply, and oral submissions at a personal hearing, RBI concluded that the charge of non-compliance was substantiated.