RBI lays down monetary penalty on IndusInd Bank Ltd.
Exercising its powers under Sections 46 and 47 of the Banking Regulation Act of 1949, which empower the Central Bank to impose monetary penalties for non-compliance with regulatory compliance, the RBI imposed a penalty of ₹4.50 Cr. Said penalty has been imposed after the Reserve Bank was dissatisfied with the response IndusInd sent to a notice as to why penalty should not be imposed due to deficiencies in compliance, and a hearing was held. It is the position of the Reserve Bank that IndusInd had neglected to comply with norms pertaining to Exposure, Income Recognition, Asset Classification, amongst other regulatory compliances. The Reserve bank maintains that the aforementioned penalty does not suggest the validity/invalidity of any transaction in question, merely that there was a deficiency in compliance.