The Reserve Bank of India (RBI) has imposed a ₹27 lakh fine on IndusInd Bank for non-compliance

The Reserve Bank of India (RBI) has imposed a fine of ₹27.3 lakh on IndusInd Bank for failing to adhere to regulatory norms. The penalty was imposed for the bank’s violation of provisions under the “Reserve Bank of India (Interest Rate on Deposits) Directions, 2016,” specifically for opening savings accounts for ineligible entities. The RBI issued the penalty on December 18, 2024, as per its statement released on Friday, November 20.

The RBI conducted a statutory inspection of IndusInd Bank based on its financial position as of March 31, 2023.

Based on its findings, the RBI identified non-compliance with certain regulations. Subsequently, the central bank issued a notice to IndusInd Bank, seeking an explanation as to why a penalty should not be imposed for failing to adhere to RBI’s prescribed directions. Following IndusInd Bank’s response to the notice, including oral submissions made during a personal hearing, the central bank confirmed that the bank had opened savings accounts for ineligible entities.

The RBI’s statement indicated that, among other findings, the issue of opening savings deposit accounts for ineligible entities was confirmed, leading to the imposition of the monetary penalty. The RBI further clarified that the penalty was imposed solely for regulatory non-compliance and does not affect the validity of any transactions the bank has conducted with its customers.