RBI Imposes Rs 3 Crore Fine On ICICI Bank For Rule Violations
The penalty has been imposed for contravention of certain directions issued by the RBI on ‘Prudential Norms for Classification, Valuation and Operation of Investment Portfolio by Banks’.
In yet another case of regulatory non-compliance, the Reserve Bank of India (RBI) has imposed a monetary fine to the tune of Rs 3 crore against ICICI Bank for violating norms related to classification, valuation and operation of investment portfolio by banks.
The penalty has been imposed by the RBI under the provisions of section 47 A (1) (c) read with section 46 (4) (i) of the Banking Regulation Act, 1949. Also Read:
What is the reason behind imposition of fine?
"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," the RBI said in a statement.
The penalty has been imposed for contravention of certain directions issued by the RBI on ‘Prudential Norms for Classification, Valuation and Operation of Investment Portfolio by Banks’.
As per the apex bank, the action is taken 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.
The bank has also received a notice asking to show cause as to why penalty should not be imposed for contravention of the provisions of the Act/ specific directions. After considering the bank’s replies to the notice, oral submissions made in the personal hearing and examination of additional submissions made by it, RBI came to the conclusion that the aforesaid charges were substantiated and warranted imposition of monetary penalty, the statement said.
On the other hand, in an update to stock exchanges, ICICI Bank said the penalty has been imposed for shifting certain investments from HTM (held to maturity) category to AFS (available for sale) category in May 2017.
"The RBI has held that the shifting of securities the second time in May 2017 without explicit permission was in contravention of RBI directions," ICICI Bank said.
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