RBI imposes penalty on IndusInd Bank
Published: Dec 13, 2017
By TIOLCORPLAWS News Service
NEW DELHI, DEC 13, 2017: THE RBI has imposed a monetary penalty of Rs. 30 million on IndusInd Bank Limited for non-compliance with its directions on Income Recognition and Asset Classification (IRAC) norms and contravention of regulatory restrictions pertaining to non-fund based (NFB) facilities. This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, taking into account failure of the bank to adhere to certain directions/ guidelines issued by RBI.
The statutory inspection of the bank with reference to its financial position as on March 31, 2016 revealed violations of various regulations issued by RBI in the assessment of Non-performing Assets (NPAs) and extension of NFB facilities. Based on the inspection report and other relevant documents, a Notice was issued to the bank dated August 10, 2017 advising it to show cause as to why penalty should not be imposed on it for non-compliance with directions issued by RBI. After considering the bank's reply, oral submissions made in the personal hearing, and also the additional information and documents furnished, RBI came to the conclusion that the aforesaid charges of non-compliance with RBI directions/ guidelines were substantiated and warranted imposition of monetary penalty.
