RBI fines five foreign banks for FEMA violation

RBI fines five foreign banks for FEMA violation Reserve Bank of India on Wednesday imposed monetry penalty on five authorised dealer banks for violation of norms. A penalty of Rs 10,000 each has been imposed on Bank of America, Bank of Tokyo Mitsubishi, The Royal Bank of Scotland, Standard Chartered Bank. While the Deutsche Bank hass been fined Rs 20,000. RBI, in a press statement, said that

penalties have been imposed after considering facts of cases and banks’ replies in matter.

The Reserve Bank had issued a show cause notice to the banks, the banks response had submitted written replies and also made oral submissions thereon. RBI, after due process, came to the conclusion that banks did indulge in violations and issued imposition of penalty.