Recorded RBI impact
Fine: Rs 5.00 L
Monetary penalty · Fresh imposition
Published by RBI
12 Apr 2013
Case Brief
The Reserve Bank of India imposed a penalty of Rs 5.00 lakh on JP Morgan Chase, N.A., Mumbai under the Banking Regulation Act, 1949. RBI said the bank had contravened various directions and instructions relating to Risk Management, Inter Bank Dealings, and Compliance Functions during 2011-2012. Following a show-cause notice, RBI examined the bank's written reply and supporting records and concluded that the violations were established, leading to the penalty.
Why RBI Acted
RBI imposed a monetary penalty of Rs 5.00 lakh on JP Morgan Chase, N.A., Mumbai under Section 47A(1)(b) read with Section 46(4)(i) of the Banking Regulation Act, 1949. The violations related to contraventions of RBI directions and instructions concerning Risk Management and Inter Bank Dealings and Compliance Functions during 2011-2012. After issuing a show-cause notice and considering the bank's written reply and record documents, RBI concluded that the violations were established and levied the penalty.
Operating Impact
JP Morgan Chase, N.A., Mumbai must absorb the monetary penalty and address the compliance weaknesses identified by RBI in its risk management, inter-bank dealing, and compliance-function controls. The action has no stated operational restriction, but it signals regulatory scrutiny over these control areas.
Regulatory Basis
- Section 47A(1)(b) read with Section 46(4)(i) of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 5.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Bank