These actions are based on the deficiencies in regulatory compliance.
FinTech BizNews Service
Mumbai, 30 November 2023: The Reserve Bank of India (RBI) has, by separate orders, imposed a monetary penalty on 2 Authorized Dealer Banks. These actions on both the Authorized Dealer Banks are based on deficiencies in regulatory compliance, as per the press releases issued by the RBI on 30 November 2023.
1 The Reserve Bank of India has imposed a monetary penalty of ?10,000/- (Rupees Ten thousand only) on Bank of America, N.A. in exercise of powers vested in the Reserve Bank under the provisions of Section 11(3) of FEMA, 1999, for violation of Reserve Bank of India’s instructions on reporting requirements under Liberalised Remittance Scheme of FEMA 1999.
The Reserve Bank of India had issued a Show Cause notice to the bank, in response to which the bank submitted a written reply and also made oral submissions thereon. After considering the facts of the case and the bank’s reply in the matter, the Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of penalty.
This action 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.
2 The Reserve Bank of India has imposed a monetary penalty of ?10,000/- (Rupees Ten Thousand only) on HDFC Bank Limited. in exercise of powers vested in the Reserve Bank under the provisions of Section 11(3) of FEMA, 1999, for violation of Reserve Bank of India’s directions on acceptance of deposits from non-residents.
The Reserve Bank of India had issued a Show Cause notice to the bank, in response to which the bank submitted a written reply and also made oral submissions thereon. After considering the facts of the case and the bank’s reply in the matter, the Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of penalty.
This action 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.
