RBI imposed Rs 59 lakh penalty on KEB Hana Bank

The Reserve Bank of India (RBI) has levied a monetary penalty of 59 lakh rupees (Rupees Fifty Nine Lakh only) on KEB Hana Bank (the bank) for non-compliance with RBI’s “Reserve Bank of India (Interest Rate on Deposits) Directions, 2016” by a decision dated May 12, 2022. This penalty was issued in the execution of RBI’s powers under Section 47 A (1) (c) of the Banking Regulation Act, 1949, read with Section 46 (4) I (the Act).

The statutory inspection for supervisory evaluation of KEB Hana Bank was conducted by RBI with reference to its financial position as on March 31, 2020. RBI, however, said the penalty is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.