RBI Slaps Fines on HDFC Bank and Bank of America for Regulatory Breaches
RBI Slaps Fines on HDFC Bank and Bank of America for Regulatory Breaches
The Reserve Bank of India (RBI) has invoked its powers under the Foreign Exchange Management Act (FEMA) to impose fines on HDFC Bank and Bank of America.
RBI has imposed symbolic fines of ₹10,000 on both HDFC Bank and Bank of America for violating regulations. HDFC Bank was penalised for non-compliance with RBI's guidelines on accepting deposits from non-residents, while Bank of America's infraction involved failing to meet reporting requirements under the FEMA 1999 Liberalised Remittance Scheme.
The central bank had previously issued show-cause notices to both banks, prompting written and oral responses. After careful consideration of the facts and submissions, the RBI determined that the violations were substantiated and warranted the imposition of penalties.
While imposing fines, RBI clarified that its action is solely based on compliance deficiencies and does not cast any doubt on the validity of any customer transactions or agreements entered into by the banks.
