Case Brief
What Happened
RBI, by an order dated December 18, 2024, imposed a monetary penalty of ₹27.30 lakh on IndusInd Bank Ltd. under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949. The penalty followed supervisory inspection findings (ISE 2023) that indicated non-compliance with certain provisions of the Reserve Bank of India (Interest Rate on Deposits) Directions, 2016. After a show-cause notice, the bank’s written and oral submissions were considered, and RBI sustained the charge that certain savings deposit accounts had been opened in the name of ineligible entities. RBI clarified that the penalty is based on regulatory compliance deficiencies and does not pronounce on the validity of the bank’s transactions or agreements.