Business

RBI imposes Rs 3 crore penalty on ICICI Bank, cites violations over transfer of securities-Business News , GadgetClock

RBI imposes Rs 3 crore penalty on ICICI Bank, cites violations over transfer of securities-Business News , GadgetClock
Written by admin
RBI imposes Rs 3 crore penalty on ICICI Bank, cites violations over transfer of securities-Business News , GadgetClock

RBI imposes Rs 3 crore penalty on ICICI Financial institution, cites violations over transfer of securities-Business News , GadgetClock

The nice has been imposed for contravention of instructions within the Grasp Round on ‘Prudential Norms for Classification, Valuation and Operation of Funding Portfolio by Banks’

RBI imposes Rs 3 crore penalty on ICICI Bank, cites violations over transfer of securities

File picture of an ICICI Financial institution department. Reuters

Mumbai:(*3*) A penalty of Rs 3 crore has been imposed on ICICI Financial institution Ltd for contravention of sure instructions, the Reserve Financial institution of India mentioned on Monday.

The RBI has imposed a financial penalty of Rs 3 crore on ICICI Financial institution for “contravention of sure instructions issued by the RBI contained in Grasp Round on ”Prudential Norms for Classification, Valuation and Operation of Funding Portfolio by Banks” dated July 1, 2015″, the central financial institution mentioned in an announcement.

In the meantime, ICICI Financial institution in a inventory alternate submitting mentioned the penalty has been imposed underneath sure provisions of the Banking Regulation Act, 1949 for shifting sure investments from HTM class to AFS class in Might 2017.

“The financial institution had transferred two separate classes of securities on two completely different dates from HTM to AFS in April and Might of 2017, which it believed was permissible as per Grasp Round on Prudential Norms for Classification, Valuation and Operation of Funding Portfolio by Banks” dated July 01, 2015,” the personal sector lender mentioned.

The RBI has held that the shifting of securities the second time in Might 2017 with out specific permission was in contravention of RBI instructions, it added.

The Reserve Financial institution, nevertheless, mentioned the motion is predicated on the deficiencies in regulatory compliance and isn’t supposed to pronounce upon the validity of any transaction or settlement entered into by the financial institution with its prospects.

Giving particulars, the RBI mentioned an examination of correspondence within the matter of shifting of securities from one class to a different revealed, inter alia, contravention of the instructions.

A discover was issued to ICICI Financial institution advising it to show-cause as to why penalty shouldn’t be imposed on it for failure to adjust to the instructions issued by the RBI.

After contemplating the financial institution’s reply to the discover, oral submissions made within the private listening to and examination of extra submissions made by it, the RBI mentioned it got here to the conclusion that the cost of non-compliance with RBI instructions was substantiated and warranted imposition of financial penalty.

#RBI #imposes #crore #penalty #ICICI #Financial institution #cites #violations #transfer #securitiesBusiness #News #GadgetClock

About the author

admin

Leave a Comment