RBI penalises ICICI Bank, Standard Chartered Bank
30 Jul 2010
The Reserve Bank of India (RBI) has slapped penalties of Rs5 lakh each on ICICI Bank Ltd and Standard Chartered Bank for failing to comply with regulatory provisions.
RBI imposed a penalty of Rs5 lakh on ICICI Bank Ltd for violation of the guidelines on Know Your Customer (KYC) and Anti Money Laundering (AML) standards issued by the banking regulator.
RBI had earlier issued a show-cause notice to ICICI in response to which the bank had submitted written replies. However, on scrutiny of the bank's replies and subsequent oral submission made by its officials, RBI has found that ICICI has clearly violated rules and hence the penalty.
RBI also imposed a penalty of Rs5 lakh on Standard Chartered Bank for not furnishing information on a foreign currency loan facility arranged by the bank to an offshore special purpose vehicle (SPV) within the stipulated time.
RBI had earlier issued a show-cause notice to StanChart on 30 March 2010. While StanChart has submitted written replies and made oral submissions, RBI has found clear violation of rules by the bank and imposed the penalty accordingly.
