The Reserve Bank of India (RBI) imposed a financial penalty of Rs 3 crore against ICICI Bank for violating standards related to the classification, valuation and operation of the investment portfolio by banks.
The central bank stated that the action against the private lender was in the exercise of the powers conferred on RBI under the provisions of Section 47 A (1) (c) read together with Section 46 (4) (i ) of the Banking Regulation Act 1949.
“This action is based on deficiencies in regulatory compliance and is not intended to rule on the validity of any transaction or agreement entered into by the bank with its customers,” the RBI said in a statement Monday.
RBI informed that a review of correspondence regarding the transfer of securities from one category to another revealed, among other things, a violation of the RBI Master Circular on “ Prudential Standards for Classification, Valuation and the Operation of the Investment Portfolio by Banks ” dated July 1, 2015.
In the same vein, a notice was sent to the bank advising it to justify the reasons why a sanction should not be imposed on it for non-compliance with the instructions issued by RBI, the central bank informed.
“After reviewing the bank’s response to the notice, the oral submissions made at the personal hearing, and considering the additional submissions it made, RBI has come to the conclusion that the aforementioned charge of failure to comply with RBI’s instructions was justified and warranted the imposition of a financial penalty. , “he further added
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