RBI News: Reserve Bank of India had issued a show cause notice to HSBC. The bank had given a written reply to the notice as well as presented its side verbally.
The Reserve Bank of India i.e. RBI on Wednesday imposed a fine of Rs 36.38 lakh on foreign lender HSBC for violating the Foreign Exchange Management Act (FEMA). In a statement, RBI said that HSBC has not followed the provision of giving necessary information under the Liberalised Remittance Scheme of FEMA Act, 1999.
Confirmation of violation of rules: In this context, the Reserve Bank of India had issued a show cause notice to HSBC. The bank had given a written reply to the notice as well as presented its side verbally. The Reserve Bank said that after considering the facts related to the case and the reply received from the bank, the Reserve Bank of India came to the conclusion that the violation of rules was confirmed and it was appropriate to impose a fine.
Hero Fincorp Limited has also been fined
Earlier, RBI had imposed a fine of Rs 3.1 lakh on Hero Fincorp Limited for non-compliance with certain provisions related to the Code of Fair Practices. Hero Fincorp did not inform the borrowers in writing about the terms and conditions of the loan in the local language understood by them.
₹74 crore fine on 64 banks and NBFCs
The Reserve Bank has imposed a monetary penalty of ₹74.1 crore on 64 banks and NBFCs during the financial year. Whereas, a total fine of Rs 33.1 crore was imposed on 41 banks in FY 2023. The data does not include cooperative banks and regional rural banks.
Action on 16 public sector banks, 13 private banks
Out of the fines imposed in FY 2024, 35 regulatory actions were on banks including 16 public sector banks, 13 private banks, four foreign banks and one small finance bank and payment bank. There were 23 fines of Rs 1 crore or more.
