The Reserve Bank of India (RBI) has imposed a penalty of Rs 27.30 lakh on IndusInd Bank for non-compliance with certain provisions of norms related to 'interest rate on deposits'.

The RBI had conducted a statutory inspection for supervisory evaluation of the bank with reference to its financial position as on 31 March 2023, and had issued a notice to the private sector lender.

After considering the reply of IndusInd Bank to the notice, additional submissions made by it, RBI said, it found, inter alia, that the charge pertaining to opening of certain savings deposit accounts in the name of ineligible entities was sustained, warranting imposition of monetary penalty.

The RBI, however, added the penalty is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transactions or agreement entered into by IndusInd Bank with its customers.