RBI fines Rs 11,83,000 crore market cap bank for violation regarding deposits from non-residents

The Reserve Bank on Thursday said it 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 central bank said the penalty on HDFC Bank is for violation of directions on acceptance of deposits from non-residents. The bank has a market capitalisation of Rs 11,83,000 crore as of November 30.

Besides this, the penalty on Bank of America, N.A. has been imposed for violation of the Reserve Bank of India's instructions on reporting requirements under the Liberalised Remittance Scheme of FEMA 1999, it said in a statement.

RBI also imposed penalties 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.

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