The Reserve Bank of India (RBI) on November 30 imposed monetary penalty on HDFC Bank, Bank of America and three co-operative banks for violation of rules. The apex Bank imposed a penalty of Rs 10,000 on HDFC Bank and Bank of America each for violations in directions on acceptance of deposits from non-residents (NRIs).
RBI in separate press releases said that in the exercise of powers vested in the Reserve Bank under the provisions of Section 11(3) of FEMA, 1999, it had sent show cause notice to both of these banks before taking the action.
"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, "said RBI in its statement.
RBI Penalties on Co-operative Banks
RBI has imposed a monetary penalty of Rs 1 lakh on the Dhrangadhra People’s Co-operative Bank, Gujarat for non-compliance on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’.
"This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47-A (1) (c) read with Sections 46 (4) (i) and 56 of the Banking Regulation Act, 1949, "RBI in its press release said.
The regulator has also imposed monetary penalty of Rs 1.50 lakh on the Patliputra Central Cooperative Bank, Bihar for non-compliance. The Mandal Nagarik Sahakari Bank of Ahmedabad, Gujarat also has been penalised of Rs 1.50 lakh by RBI for non-compliance.
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