RBI imposes monetary penalty on on Deutsche Bank A.G

Case Brief

RBI issued an order dated November 05, 2018 imposing a monetary penalty of ₹ 30.10 million on Deutsche Bank A.G. The penalty was imposed for non-compliance with RBI directions on Income Recognition and Asset Classification (IRAC) norms, Know Your Customer / Anti-money Laundering (KYC/AML) norms, and disclosure of monetary penalties imposed by the regulator. RBI stated that the action was taken under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, and that it was based on deficiencies in regulatory compliance rather than a pronouncement on the validity of any customer transaction or agreement.