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MUMBAI : The Reserve Bank of India (RBI) on Monday imposed a fine of 2 crore on RBL Bank Ltd for flouting norms related to the opening of bank accounts and board composition.

An RBI investigation revealed that RBL Bank was not compliant in opening five savings deposit accounts in the name of a cooperative bank, and had failed to meet the provisions related to the composition of its board of directors.

The regulator said the statutory inspection for supervisory evaluation (ISE) of the bank was conducted with reference to its financial position as of 31 March 2019. The examination of the risk assessment report and the ISE report of 2019, revealed “contravention of regulatory directions". “In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for contravention of / non-compliance with the provisions of the directions/Act, as stated therein," RBI said.

After considering the bank’s replies to the notice, RBI concluded that the charges were substantiated and warranted imposition of a fine. According to RBI, RBL Bank was fined for contravention of Section 28 (h) of the RBI (interest rate on deposits) directions, 2016, and for non-compliance with the provisions of clause (b) of sub-section (2) of section 10A of the Banking Regulation Act, 1949.

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