The Reserve Bank of India has said that the fine is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by IndusInd Bank with its customers. Manappuram Finance has been fined for non-compliance with certain provisions of KYC guidelines.
Reserve Bank of India (RBI) has imposed a fine of Rs 27.30 lakh on private sector IndusInd Bank. This fine has been imposed for non-compliance of certain provisions of the norms related to interest rates on deposits. In a statement issued by the RBI, it was said that the central bank had conducted an inspection for supervisory evaluation of the bank regarding the financial position of IndusInd Bank as on March 31, 2023. A show cause notice was issued to the bank based on the findings of the inspection.
After considering the reply of IndusInd Bank to the notice and additional submissions on its behalf, RBI found that it is appropriate to impose a monetary penalty due to allegations related to opening of some savings deposit accounts in the name of ineligible entities, among other things. However, the Reserve Bank of India has said that the fine is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by IndusInd Bank with its customers.
Manappuram Finance also fined
In another statement, RBI said that it has also imposed a fine of Rs 20 lakh on Manappuram Finance. This fine has been imposed for non-compliance of certain provisions of the central bank’s KYC guidelines. RBI had conducted an inspection regarding the financial position of Manappuram Finance as of March 31, 2023. After non-compliance of guidelines was found in the inspection and related communication, a show cause notice was issued to the company. After Manappuram Finance’s reply to the notice and oral submissions made in the personal hearing, RBI found that the charges against the company are correct and monetary penalty is imposed.
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