"RBI slaps ₹2 Crore fine on Deutsche Bank AG for breach of norms on deposit rates"
On Tuesday the RBI has imposed a penalty of ₹2 crore on Deutsche Bank AG for the violation of the standard on the deposit rates. In a statement by the central bank has stated that For non-compliance with certain provisions of directors issued by RBI contained in the Reserve Bank of India. The penalty has been imposed under the section 47A(1)(c) the section 46(4)(i) of the banking regulations act 1949. The RBI made it clarified that the action taken by the RBI is based on the deficiencies in the regulatory compliance and isn't the validity of any transaction or agreement entered into by the bank with the customers. The issue raised with a statutory inspection which took place in Deutsche Bank AG on March 31st ,2019. After the statutory inspection a notice was issued to the bank by the RBI to show cause as to why penalty should not be imposed on it for the non - compliance with the directions. After the banks reply RBI took oral submissions, examination of additional submissions and then RBI directions was substantiated and warranted imposition of monetary penalty.