The Reserve Bank of India (RBI) imposed a fine of Rs 3 crore on ICICI Bank (ICICI Bank) on Monday.
New Delhi. The Reserve Bank of India (RBI) imposed a fine of Rs 3 crore on ICICI Bank (ICICI Bank) on Monday. The Reserve Bank said in a statement that the penalty was imposed on July 1, 2015 for violation of the mandatory guidelines issued by Master Circulation- Prudential Norm for Classification Valuation and Operation of Investment Portfolio by Bax. The central bank said that this action has been taken due to irregularities in regulatory compliance. Penalty levied under these provisions
According to IRBI, the bank has been found guilty of violating the instructions of the Reserve Bank in the matter of shifting securities from one category to another. Meanwhile, ICICI Bank informed the stock market that in May 2017, certain investments from HTM category to AFS category have been fined under the provisions of the Banking Regulation Act, 1949. The Reserve Bank said that the transfer of securities for the second time in May 2017 without explicit approval was in violation of its instructions.
In this case, a show cause notice was issued to ICICI Bank. After the bank’s reply to the notice and the oral response given at the hearing, the Reserve Bank decided that the non-compliance allegations against the bank were true. Penalty should be imposed on the bank. On Tuesday, ICICI Bank shares fell 3.75 points (0.62%) to close at Rs 596.75 in the Nifty.
Know what will be the effect on your money
RBI has clarified that there will be no effect on the money of the customers deposited in the bank. According to the RBI, such action taken against banks is based on deficiencies in regulatory compliance. Its purpose is not to pass judgment on the validity of any transaction or agreement between banks and customers. In such a situation, this action is not going to affect the money of the customers of this bank. It is not a decision by the bank on the validity of any transaction or agreement with its customers.