Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1 crore on IndusInd Bank Ltd. by order dated June 29, 2022. RBI found that the bank had not complied with certain provisions of the RBI’s Know Your Customer (KYC) Directions, 2016. The deficiencies related to customer due diligence in accounts opened through OTP-based e-KYC in non-face-to-face mode, including cases where aggregate credits in a financial year exceeded ₹2 lakh and fixed deposit accounts were opened for amounts above prescribed thresholds. The penalty was levied under section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949, after RBI considered the bank’s reply and submissions.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 Cr
- Entity Type
- Bank
- Action Type