RBI imposes Rs. 3-crore fine on Induslnd Bank

The Reserve Bank of India has imposed a penalty of Rs 3 crore on IndusInd Bank for non-compliance with its directions on “Income Recognition and Asset Classification” (IRAC) norms and contravention of regulatory restrictions pertaining to non-fund based (NFB) facilities.

“This action is based on 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,” the RBI said in a statement.

“The statutory inspection of the bank with reference to its financial position as on March 31, 2016 revealed, inter alia, violations of various regulations issued by RBI in the assessment of Non-performing Assets (NPAs) and extension of NFB facilities.”