(Pooja Dubey, Intern Journalist) The Reserve Bank of India (RBI) has imposed a penalty of Rs 4.5 crore on IndusInd Bank. The bank was quick to follow some RBI instructions. The RBI, however, said that the validity of any transaction or agreement between the bank and the customer will be maintained as before.
Last month, the RBI imposed a penalty of Rs 5 lakh on Sriram City Union Finance of Chennai for some other similar negligence. Citibank was also fined Rs 4 crore for some other negligence cases earlier this year.
The instructions that IndusInd Bank followed to lax were related to exposure norms, prudential norms on income recognition, asset classification, and provisioning to advance, and others. RBI said SPARC (Supervisory Program for Assessment of Risk and Capital) – Monitoring of Information Submission by Bank, Creation of a Central Repository of Large Common Exposures – Across Banks (Central Repository of Information on Large Credits – Revision of reporting instructions In context) and disclosure in financial statements – following instructions relating to notes to accounts has also been negligent.
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