RBI Penalty on HSBC: The Central Reserve Bank (RBI) has imposed a fine of Rs 1.73 crore on HSBC. The Reserve Bank of India on Monday said that it has imposed a penalty of Rs 1.73 crore on HSBC for non-compliance of regulations.
RBI said in a statement that this action has been taken on the basis of deficiencies in regulatory compliance. The central bank had conducted a statutory inspection regarding the monitoring investigation in the context of the financial position of the bank as on March 31, 2021. In the context of this investigation, non-compliance of rules came to light.
The bank, in violation of RBI rules, gave wrong information in respect of many expired credit cards with zero balance to all the four ‘credit’ information companies.
Notice sent to the bank
Reserve Bank of India has sent a notice to HSBC asking why penalty should not be imposed on you for violation of the aforesaid provisions of the CIC Rules. However, after this, the notice sent by the RBI was replied to by the bank.
Penalty was required
The Bank, while replying to the RBI notice and making oral submissions during the personal hearing, came to the conclusion that the allegation of violation of the aforesaid CIC Rules was warranted and monetary penalty was warranted.
These banks were also fined
In addition, the central bank has imposed a monetary penalty of Rs 2 lakh on Thrissur Urban Co-operative Bank Ltd., Thrissur, Kerala. Which was for non-adherence to the instructions issued by the central bank on the management of advances. In another statement, RBI said that it has imposed a penalty of Rs 1.25 lakh on hilai Nagarik Sahakari Bank Maryadit, Bhilai (Chhattisgarh).
The RBI had imposed these penalties on these banks for violation/non-compliance with the provisions of the Banking Regulation Act, 1949 and the Depositor Education and Awareness Fund Scheme, 2014.
