RBI Fines Bank Of America, N.A., HDFC Bank
On Thursday, the Reserve Bank announced the imposition of a Rs 10,000 penalty each on Bank of America, N.A. and HDFC Bank for breaching specific regulations. The penalty on Bank of America, N.A. pertains to the violation of the reporting requirements outlined in the Reserve Bank of India's instructions regarding the Liberalised Remittance Scheme of FEMA 1999, as stated in an official statement.
In a separate communication, the central bank disclosed that HDFC Bank is being penalised for failing to adhere to directives regarding the acceptance of deposits from non-residents. Additionally, penalties have been levied on five cooperative banks due to their non-compliance with various regulatory norms.
These cooperative banks include The Patliputra Central Cooperative Bank, Bihar; The Balasore Bhadrak Central Co-operative Bank, Gujarat; Patan Nagarik Sahakari Bank, Patan, Gujarat; and The Mandal Nagarik Sahakari Bank, Gujarat.
The RBI clarified that the imposed penalties are rooted in deficiencies in regulatory compliance and are not intended to pass judgment on the validity of any transactions or agreements made by these entities with their customers.
