The Reserve Bank on Tuesday imposed a penalty of Rs 2 crore on Deutsche Bank AG for non-compliance with sure provisions of instructions regarding rate of interest on deposits. The central financial institution mentioned the statutory inspection of Deutsche Bank’s monetary place as on March 31, 2019 and the Risk Assessment Report revealed non-compliance with the ‘Reserve Bank of India (Interest Rate on Deposits) Directions, 2016’.
Following the inspection, the RBI issued a present trigger discover to the financial institution. “After considering the bank’s reply to the notice, oral submissions made in the personal hearing and examination of additional submissions, RBI concluded that the charge of non-compliance with aforesaid RBI directions was substantiated and warranted imposition of monetary penalty,” the central financial institution mentioned.
Therefore, RBI by an order on Tuesday imposed a penalty of Rs 2 crore on Deutsche Bank AG. The motion, the RBI added, was based mostly on the deficiencies in regulatory compliance and was not meant to pronounce upon the validity of any transaction or settlement entered into by the financial institution with its clients.