Monetary Penalty on IndusInd Bank Limited
RBI press-release 2026-2027/897 · 14 Aug 2026
Official title
Reserve Bank of India imposes monetary penalty on IndusInd Bank Limited
Summary
Check the official recordWhat changed
The Reserve Bank of India imposes a monetary penalty of ₹59.20 lakh on IndusInd Bank Limited. The bank failed to comply with RBI directions on Interest Rate on Deposits and Securitisation of Standard Assets. The bank paid interest on deposits in certain current accounts. The bank also performed activities in the nature of Synthetic Securitisation. The RBI conducted a statutory inspection of the bank for the financial position as of March 31, 2025. The RBI issued a show cause notice to the bank. The RBI considered the reply and submissions of the bank before the final order. This action relates to regulatory compliance deficiencies. It does not affect the validity of any customer transactions or agreements.
Key dates
- Reference date for financial position inspection
- 31 Mar 2025
- Date of order imposing penalty
- 14 Aug 2026
Who is affected
Document text
August 14, 2026
Reserve Bank of India imposes monetary penalty on IndusInd Bank Limited
The Reserve Bank of India (RBI) has, by an order dated August 14, 2026, imposed a monetary penalty of ₹59.20 lakh (Rupees Fifty-Nine lakh twenty thousand only) on IndusInd Bank Limited (the bank) for non-compliance with certain provisions of directions issued by RBI on ‘Interest Rate on Deposits’ and ‘Securitisation of Standard Assets’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949. The Statutory Inspection for Supervisory Evaluation of the bank was conducted by RBI with reference to its financial position as on March 31, 2025. Based on supervisory findings of non-compliance with the provisions of RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for failure to comply with the said provisions of RBI directions. After considering the bank’s reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI found that the following charges against the bank were sustained, warranting imposition of monetary penalty: (i) The bank paid interest on deposits held in certain current accounts; and (ii) The bank undertook activities in the nature of ‘Synthetic Securitisation’. The 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. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
(Brij Raj) Press Release: 2026-2027/897 Chief General Manager ᮧेस ᮧकाशनी PRESS RELEASE
भारतीय ᳯरज़वर् बᱹक
RESERVE BANK OF INDIA
वेबसाइट : www.rbi.org.in/hindi संचार िवभाग, कᱶᮤीय कायार्लय, शहीद भगत ᳲसंह मागर्, फोटर्, मुंबई - 400 001 Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort, ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
Source details
- Source
- Reserve Bank of India
- Type
- press-release
- Published by source
- 14 Aug 2026
- Document number
- 2026-2027/897
- Issuing division
- Department of Communication
- Coverage area
- banking