RBI imposes $20 million penalty on IDFC Bank

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Mumbai | Updated: October 25, 2017 12:23:49 PM

The Reserve Bank of India (RBI) today said it has imposed a monetary penalty of $20 million on IDFC Bank Limited for contravention of regulatory restrictions pertaining to loans and advances.

RBI, Yes Bank, IDFC BankThe RBI said 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. (Reuters)

The Reserve Bank of India (RBI) today said it has imposed a monetary penalty of $20 million on IDFC Bank Limited for contravention of regulatory restrictions pertaining to loans and advances. The RBI said 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 status report of the bank based on its financial position as on December 31, 2016, revealed, inter alia, non- adherence with certain directions pertaining to sanction/renewal of loans and advances, the central bank said. “Based on the status report, a notice was issued to the bank dated August 07, 2017 advising it to show cause as to why penalty should not be imposed on it for non-compliance with directions issued by RBI,” it added.

After considering the bank’s reply and oral submissions made in the personal hearing, RBI said, “it came to the conclusion that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty”.

NOTE: This story inadvertently used image of IDBI Bank. It has now been replaced

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