INDIA

RBI Imposes Rs 2 Crore Penalty on Deutsche Bank

The Reserve Bank of India (RBI) on Tuesday imposed a penalty of Rs 2 crore on Deutsche Bank AG for non-compliance with certain provisions of directions concerning interest rate on deposits. 
The penalty has been imposed in exercise of powers vested in 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.
The central bank said the statutory inspection of Deutsche Bank’s financial position as of March 31, 2019, and the Risk Assessment Report revealed non-compliance with the ‘Reserve Bank of India (Interest Rate on Deposits) Directions, 2016’.
Following the inspection, the RBI issued a show-cause notice to the bank.
“After considering the bank’s reply to the notice, oral submissions made in the personal hearing and examination of additional submissions, RBI concluded that the charge of non-compliance with aforesaid RBI directions was substantiated and warranted imposition of monetary penalty,” the central bank said.
Therefore, RBI by an order on Tuesday imposed a penalty of Rs 2 crore on Deutsche Bank AG.
The action, the RBI added, was based on the deficiencies in regulatory compliance and was not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

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