Mumbai, Jan 12 (SocialNews.XYZ) The Reserve Bank of India (RBI) on Tuesday imposed a penalty of Rs 2 crore on Deutsche Bank AG for non-compliance with certain directions issued by the central bank.
An RBI statement said that the action is based on the 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 bank did not comply with "certain provisions of directions contained in the 'Reserve Bank of India (Interest Rate on Deposits) Directions, 2016'," said the statement.
The penalty has been imposed in exercise of powers vested in the RBI under the provisions of Section 47 A (1) (c), read with Section 46 (4) (i) of the Banking Regulation Act, 1949.
The RBI said that the statutory inspection of the bank with reference to its financial position as on March 31, 2019 and the Risk Assessment Report revealed non-compliance with certain directions issued by the RBI.
The apex bank issued a notice to the bank advising it to show cause as to why penalty should not be imposed on it for non-compliance with the directions.
After considering the bank's reply to the notice, oral submissions made in the personal hearing and examination of additional submissions, the RBI concluded that the charge of non-compliance with its directions was substantiated and warranted imposition of monetary penalty, the statement said.
Source: IANS
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