New Delhi [India], Dec 13 (ANI):The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 30 million on IndusInd Bank for non-compliance with the directions issued by RBI on Income Recognition and Asset Classification (IRAC) norms and contravention of regulatory restrictions pertaining to non-fund based (NFB) facilities.
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 advising it to show cause as to why penalty should not be imposed on it for non-compliance with the directions issued by RBI.
After considering the bank's reply and other furnished information, RBI came to the conclusion that the charges of non-compliance with RBI directions/ guidelines were substantiated and warranted imposition of monetary penalty.
"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," RBI said in an official release. (ANI)