RBI penalises 5 foreign banks for flouting FEMA | Current Affairs, Current Affairs 2017

RBI penalises 5 foreign banks for flouting FEMA

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RBI penalises 5 foreign banks for flouting FEMAThe RBI said it has imposed monetary penalty on five foreign banks for violation of its instructions on reporting requirements of the Foreign Exchange Management Act, 1999.

The five banks are Bank of America, Bank of Tokyo Mitsubishi, Deutsche Bank, The Royal Bank of Scotland and Standard Chartered Bank.

The Reserve Bank of India imposed a penalty of Rs 10,000 each on Bank of America, Bank of Tokyo Mitsubishi, The Royal Bank of Scotland and Standard Chartered Bank. Deutsche Bank was penalised Rs 20,000.

The apex 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,” a statement said.

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