The Reserve Bank of India (RBI) on Friday imposed a fine of Rs 29.6 lakh on Hong Kong and Shanghai Banking Corporation Limited (HSBC) for not following some instructions related to cards.
The Reserve Bank of India (RBI) monitors the operations of all the banks in the country. Whenever a bank ignores the rules and acts arbitrarily, the RBI can impose a fine on it. In this episode, Hong Kong and Shanghai Banking Corporation Limited (HSBC) has suffered a major setback. The Reserve Bank of India has imposed a total fine of Rs 29.6 lakh on HSBC Bank for violating the rules.
The central bank imposed this fine on HSBC for not following some instructions related to cards. The central bank said in a statement that this fine has been imposed on HSBC for not following some instructions issued by the Reserve Bank of India on “banks’ credit cards, debit cards and rupee denominated co-branded prepaid card operations”.
Show cause notice was issued to the bank
According to RBI, Statutory Inspection (ISE 2022) was conducted by it for supervisory evaluation with respect to the financial position of the bank as on March 31, 2022. It found that the instructions of RBI were not followed. In that regard, a notice was issued to the bank on the basis of the relevant correspondence. In it, the bank was asked to give reasons and asked why it should not be fined for failing to comply with the said instructions. RBI said that after considering the bank’s reply to the notice, oral reply given during personal appearance and additional information provided by it, it found that among other things, the allegations against the bank are proved for which it was necessary to impose monetary penalty.
What will happen to the customers’ money now?
However, RBI said that this penalty is based on deficiencies in statutory and regulatory compliance. Its purpose is not to question the validity of any transaction or agreement entered into by the bank with its customers.
Also Read-
- SIM Card New Rule: TRAI changed the rules of SIM swap, will be implemented from July 1
- Jio Recharge Plan Hike: All plans are getting expensive from July 3, what is the new price and validity, see the full list
- Government has announced the interest rates on Small Savings Scheme for the second quarter
