Reserve Bank of India imposes monetary penalty on Deutsche Bank AG

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹2 crore on Deutsche Bank AG by order dated January 12, 2021. The penalty was levied for non-compliance with certain provisions of RBI’s Interest Rate on Deposits Directions, 2016, following a statutory inspection and review of the Risk Assessment Report for the bank’s financial position as on March 31, 2019. RBI stated that the action was taken under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, after considering the bank’s reply, oral submissions, and additional submissions, and concluded that the charge of non-compliance was substantiated. RBI also clarified that the action was based on regulatory compliance deficiencies and did not pronounce on the validity of any transaction or agreement with customers.