The Reserve Bank of India (RBI) has imposed penalty on five foreign banks for violation of its instructions on reporting requirements under the Foreign Exchange Management Act, 1999 (FEMA).
The five foreign banks are: Deutsche Bank, Standard Chartered Bank, Bank of America, Bank of Tokyo Mitsubishi and The Royal Bank of Scotland. Germany’s Deutsche Bank has been imposed fine of Rs 20,000, while Bank of America, Bank of Tokyo Mitsubishi, The Royal Bank of Scotland and Standard Chartered Bank have been fined Rs 10,000 each. “The penalties have been imposed in exercise of the powers vested in the Reserve Bank under the provisions of Section 11(3) of FEMA 1999, taking into account, the violations of the instructions /directions/ guidelines issued by the RBI, from time to time,” the RBI said.
The RBI said it has issued show cause notices to all the banks, in response to which the banks submitted written replies and also made oral submissions. “After considering the facts of the cases and the banks’ replies in the matter, RBI came to the conclusion that the violations were substantiated and warranted imposition of penalty,” it said.