Reserve Bank imposes Rs 2 cr penalty on RBL Bank

Mumbai: The Reserve Bank of India on Monday imposed a penalty of Rs 2 crore on private lender RBL Bank for deficiencies in regulatory compliances and non-compliance of the provisions of the Banking Regulation Act.

Following supervisory evaluation of the RBL Bank, the Reserve Bank of India raised issues relating to contravention of certain regulatory directions and non-compliance with the provisions of the Banking Regulation Act concerning opening of five savings accounts in the name of a cooperative bank and composition of the board of directors.

The Reserve Bank of India later issued a notice to the bank advising it to show cause as to why penalty should not be imposed for contravention of and non-compliance with the provisions of its directions and provisions of the Banking Regulation Act.