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RBI Imposes Monetary Penalty on Five Authorised Dealer Banks

The Reserve Bank of India has imposed monetary penalty on the following five banks for violation of Reserve Bank of India’s instructions on reporting requirements of the Foreign Exchange Management Act, 1999 (FEMA). The details of the penalty amounts are:

Sl. No.
Name of the bank
Penalty Amount
(in Rs.)
Bank of America
Bank of Tokyo Mitsubishi
Deutsche Bank
The Royal Bank of Scotland
Standard Chartered Bank

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 Reserve Bank of India, from time to time.

The Reserve Bank had issued a show cause notice to the banks, in response to which the banks submitted written replies and also made oral submissions thereon. After considering the facts of the cases and the banks’ replies in the matter, Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of penalty.

Ref: RBI Press Release : 2016-2017/1604 Date : Dec 21, 2016

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