Recorded RBI impact
Fine: Rs 59.0 L
Monetary penalty · Fresh imposition
Published by RBI
13 May 2022
Case Brief
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.
Why RBI Acted
RBI imposed a monetary penalty on KEB Hana Bank under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, following supervisory inspection. RBI found the bank had failed to comply with the RBI’s Interest Rate on Deposits Directions, 2016: deposit interest rates were not consistent and transparent, the rate details were not available in the Core Banking System for supervisory review, and the rates were not uniform for all customers and were discriminatory in nature. After notice, reply, and oral hearing, RBI concluded the non-compliance was substantiated and warranted penalty.
Operating Impact
KEB Hana Bank must bear the monetary penalty and ensure future compliance with RBI’s deposit interest rate directions. The order does not invalidate customer transactions, but it signals heightened compliance expectations around transparency, uniformity, and supervisory record-keeping for deposit pricing.
Regulatory Basis
- Section 47 A (1) (c) read with sections 46 (4) (i) of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 59.0 L
- Order Date
- 12 May 2022
- Effective From
- 12 May 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Bank