A penalty of Rs 3 crore has been imposed on ICICI Bank Ltd for contravention of sure instructions, the Reserve Bank of India mentioned on Monday.
The RBI has imposed a financial penalty of Rs 3 crore on ICICI Bank for “contravention of certain directions issued by the RBI contained in Master Circular on ‘Prudential Norms for Classification, Valuation and Operation of Investment Portfolio by Banks’ dated July 1, 2015”, the central financial institution mentioned in a press release.
It, nonetheless, added the motion relies on the deficiencies in regulatory compliance and isn’t meant to pronounce upon the validity of any transaction or settlement entered into by the financial institution with its clients.
Giving particulars, the RBI mentioned an examination of correspondence within the matter of shifting of securities from one class to a different revealed, inter alia, contravention of the instructions.
A discover was issued to ICICI Bank advising it to show-cause as to why penalty shouldn’t be imposed on it for failure to adjust to the instructions issued by the RBI.
After contemplating the financial institution’s reply to the discover, oral submissions made within the private listening to and examination of further submissions made by it, the RBI mentioned it got here to the conclusion that the cost of non-compliance with RBI instructions was substantiated and warranted imposition of financial penalty.
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