The Reserve Bank of India (RBI) on Thursday said that it has imposed a fine of Rs 58.9 crore for non-compliance on direct sale of securities from its HTM portfolio.
The Reserve Bank of India (RBI) on Thursday said that it has imposed a fine of Rs 58.9 crore for non-compliance on direct sale of securities from its HTM portfolio. Earlier the RBI had imposed fine on other banks such State Bank of India, Axis Bank, Indian Overseas Bank, and Airtel Payments Bank for non-compliance on various issues.
“The Reserve Bank of India (RBI) has imposed through an order dated March 26, 2018, a monetary penalty of ₹589 million on ICICI Bank Limited (the bank) for non-compliance with directions issued by RBI on direct sale of securities from its HTM portfolio and specified disclosure in this regard,” the RBI said in a statement on Thursday.
HTM (Held to Maturity) portfolio is where banks make investments and hold it until maturity. As per RBI rules,
total investments under HTM category should not exceed 24% of the bank’s total investment.
The central bank said that the action is being taken based on the deficiencies in regulatory compliance and does not have any impact the bank’s customers. “This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, taking into account failure of the bank to adhere to the aforesaid directions/guidelines issued by RBI,” the RBI statement reads.
On March 7, the central bank had imposed a penalty of Rs 40 lakh on India’s largest lender SBI for non-compliance with the directions issued by the RBI on Detection and Impounding of Counterfeit Note. On March 5, the RBI had imposed a fine of Rs 3 crore and Rs 2 crore on Axis Bank and Indian Overseas Bank (IOB) for non-compliance with the Know Your Customers (KYC) norms. The penalty was also imposed on when a fraud was detected at one of its branches.