The Reserve Bank of India has imposed a Rs59.20 lakh fine on IndusInd Bank for breaches related to deposit interest rates and securitisation, part of a broader enforcement drive targeting several financial institutions for regulatory lapses.
The Reserve Bank of India has fined IndusInd Bank Rs59.20 lakh for breaches linked to deposit interest rates and securitisation, in a fresh reminder of how closely the regulator is policing compliance across the banking system. According to ABP Live, the central bank found that the lender had paid interest on certain current account balances, even though those accounts are treated differently under RBI rules, and had also engaged in synthetic securitisation activities that did not comply with its norms.
The action was part of a wider enforcement drive that also hit three other financial firms. ABP Live reported that Fusion Finance was fined Rs2.7 lakh for KYC lapses, Northern Arc Capital Rs6.2 lakh for shortcomings in customer grievance reporting and internal ombudsman rules, and Muthoot MCred Rs3.1 lakh for classifying some non-performing asset accounts as standard before overdue interest and principal had been cleared.
The RBI said the penalties were imposed for regulatory violations and did not imply fraud or wrongdoing affecting customers. In other words, account holders at the affected institutions should not expect immediate disruption to their services or balances as a result of the fines, the regulator said.
The latest penalty is not the first time IndusInd Bank has faced RBI action. Earlier reporting by Livemint, Business Standard, The Economic Times and The Financial Express shows the lender has been fined in previous years over issues ranging from KYC failures to deposit-related rules and prudential lending norms, underlining a pattern of regulatory scrutiny that has followed the bank over time.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
