The Reserve Bank of India has imposed a Rs 3 crore penalty on IndusInd Bank for not following the central bank’s regulations on classification of bad loans. RBI said in a statement the statutory inspection of the bank with reference to its financial position as on 31 March 2016 revealed, inter alia, violations of various regulations issued by RBI in the assessment of non-performing assets and extension of non-fund based facilities. The bank had responded to an earlier notice of the RBI, but the RBI came to the conclusion that the charges were substantiated and warranted imposition of a monetary penalty. In such earlier actions, the RBI had imposed penalties on YES Bank for breaching its rules on classifying NPAs and failing to report a security incident involving its ATMs on time and on IDFC Bank for breaching regulations on giving loans.
