Recorded RBI impact
Monetary penalty
Monetary penalty · Fresh imposition
Published by RBI
21 Dec 2016
Case Brief
The Reserve Bank of India imposed monetary penalties on five authorised dealer banks: Bank of America, Bank of Tokyo Mitsubishi, Deutsche Bank, The Royal Bank of Scotland, and Standard Chartered Bank. The penalties were imposed for violation of RBI instructions on reporting requirements under the Foreign Exchange Management Act, 1999. RBI issued show-cause notices, considered the banks’ written and oral replies, and concluded that the violations were substantiated and warranted penalty under Section 11(3) of FEMA, 1999.
Why RBI Acted
RBI imposed monetary penalties on five authorised dealer banks under Section 11(3) of FEMA, 1999 for violation of Reserve Bank instructions on reporting requirements. The release says the banks were issued show-cause notices, submitted written replies and oral submissions, and RBI concluded the violations were substantiated and warranted penalty.
Operating Impact
Each of the five banks is liable to pay the imposed penalty amount and comply with RBI’s reporting requirements under FEMA going forward. The action has no operational restriction described, but it records regulatory non-compliance and may affect ongoing supervision.
Regulatory Basis
- Section 11(3) of FEMA 1999
Action Facts
- Primary Impact
- Monetary penalty
- Entities Affected
- 5
- Entity Role
- Bulk Member
- Entity Type
- Bank
Related Entities
Entities similar to Bank of Tokyo Mitsubishi