The Reserve Bank of India (RBI) on Tuesday imposed a penalty of Rs 2 crore on Deutsche Bank AG for non-compliance with certain provisions of directions concerning interest rate on deposits.
The FBI said the statutory inspection of Deutsche Bank's financial position as of 31 March 2019 and the Risk Assessment Report revealed non-compliance with the 'Reserve Bank of India, Interest Rate on Deposits, Directions, 2016'.
After considering the bank's reply to the notice, verbal submissions made in the personal hearing and examination of additional submissions, theCentral Bank concluded that the charge of non-compliance with aforesaid RBI directions was substantiated and warranted imposition of monetary penalty," the central bank said.
Inevitably, RBI slapped a penalty of Rs 2 crore on Deutsche Bank AG. The RBI added that the action was on the basis of the deficiencies in regulatory compliance and was not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.