Case Brief
What Happened
The Reserve Bank of India imposed monetary penalties on two authorised dealer banks for violating RBI instructions on reporting requirements under FEMA 1999. The banks named in the release are The Hongkong and Shanghai Banking Corporation Ltd. and Kotak Mahindra Bank. RBI said it had issued show-cause notices, considered the banks’ written and oral submissions, and concluded that the violations were substantiated. The penalties were imposed under section 11(3) of FEMA 1999.