RBI imposes ₹2 crore fine on Deutsche Bank for non-compliance of various norms1 min read . Updated: 12 Jan 2021, 09:06 PM IST
Penalty has been imposed in exercise of powers vested in RBI under the provisions of the Banking Regulation Act, 1949, the central bank said in a release
Mumbai: The Reserve Bank of India (RBI) on Tuesday said it has imposed a penalty of ₹2 crore on Deutsche Bank for non-compliance with certain provisions of directions issued by RBI (Interest Rate on Deposits) Directions, 2016.
Penalty has been imposed in exercise of powers vested in RBI under the provisions of the Banking Regulation Act, 1949, the central bank said in a release.
RBI said that a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for non-compliance with the directions. After considering the bank’s reply to the notice, oral submissions made in the personal hearing and examination of additional submissions, the central bank said it concluded that the charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty.
"This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.," it said further.