The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 59.20 lakh on IndusInd Bank Limited for non-compliance with certain regulatory directions related to interest rates on deposits and securitisation of standard assets.

The penalty was imposed through an order dated August 14, 2026, under the provisions of the Banking Regulation Act, 1949. The action followed the RBI’s statutory inspection of the bank, conducted with reference to its financial position as of March 31, 2025.

The central bank said its supervisory review found that the bank had paid interest on deposits maintained in certain current accounts. RBI also found that the bank had undertaken activities that amounted to ‘synthetic securitisation’, which was not in line with the applicable regulatory directions.

The penalty was imposed after RBI considered the bank’s response to the show-cause notice, additional submissions and representations made during a personal hearing.

RBI clarified that the action relates to regulatory compliance deficiencies and does not question the validity of any transactions or agreements entered into by the bank with its customers. The monetary penalty is also without prejudice to any other action that may be initiated against IndusInd Bank.