RBI Imposes Penalty of Rs 10,000 Each On HDFC, Bank of America

The Reserve Bank of India has imposed a penalty of Rs 10,000 each on Bank of America, N.A. and HDFC Bank Ltd for violation of certain norms. The penalty on Bank of America, N.A. has been imposed for violation of Reserve Bank of India’s instructions on reporting requirements under Liberalised Remittance Scheme of FEMA 1999, the RBI said in a statement.

In another statement, the central bank said penalty on HDFC Bank is for violation of directions on acceptance of deposits from non-residents. Besides, penalties have been imposed on five cooperative banks for non-compliance with various regulatory norms.

The cooperative banks which have been penalised are The Patliputra Central Cooperative Bank, Bihar; The Balasore Bhadrak Central Co-operative Bank, Odisha; The Dhrangadhra People’s Co-operative Bank, Gujarat; Patan Nagarik Sahakari Bank Ltd., Patan, Gujarat; and The Mandal Nagarik Sahakari Bank, Gujarat.

In all cases, the RBI said the penalties are based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by entities with their customers.