The Reserve Bank of India has slapped a fine of Rs 2 crore on Deutsche Bank AG for violating deposit rate norms.

"RBI has, by an order dated January 12, 2021, imposed a monetary penalty of Rs 2 crore on Deutsche Bank AG (the bank) for non-compliance with certain provisions of directions issued by RBI contained in the “Reserve Bank of India (Interest Rate on Deposits) Directions, 2016", the central bank said in a statement.

"This 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," RBI added.

The monetary penalty comes after a statutory inspection of Deutsche Bank AG was conducted with reference to its financial position as on 31 March 2019. "The Risk Assessment Report pertaining thereto revealed, interalia, non-compliance with above-mentioned directions issued by RBI," the central bank said.