New Delhi, March 21 -- The Reserve Bank of India has urged the CEO of IndusInd Bank and his deputy to step down after significant accounting lapses as soon as replacements are found and the central bank has approved them, according to four sources familiar with the conversations.

IndusInd Bank strongly denied the claims, however, stating they are "factually incorrect."

"The information circulating is entirely inaccurate and does not reflect the true situation," the bank said.

IndusInd is India's fifth largest private lender, with a 5.4 trillion rupee ($63 billion) balance sheet. On March 10 it disclosed that its derivatives portfolio was overvalued by around 2.35% - about $175 million - after non-compliant internal trades.

The bank, h...