The Reserve Bank of India (RBI) on Wednesday imposed a fine of Rs 36.38 lakh on foreign lender HSBC for violation of the Foreign Exchange Management Act (FEMA). RBI said in the statement that HSBC has not followed the provision of providing necessary information under the Liberalized Remittance Scheme of FEMA Act, 1999.
Confirmation of violation of rules: In this context, Reserve Bank of India had issued a show cause notice to HSBC. Along with giving a written reply to the notice, the bank had also presented its side orally. The Reserve Bank said that after considering the facts related to the case and the reply received from the bank, the Reserve Bank of India came to the conclusion that the violation of the rules was confirmed and the imposition of penalty was appropriate.
Hero Fincorp Limited has also been fined
Earlier, RBI had imposed a fine of Rs 3.1 lakh on Hero Fincorp Ltd for non-compliance with certain provisions related to the Fair Practices Code. Hero Fincorp did not inform the borrowers in writing about the terms and conditions of the loan in a local language understood by them.
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₹74 crore fine on 64 banks and NBFCs
The Reserve Bank has imposed a monetary penalty of ₹74.1 crore on 64 banks and NBFCs during the financial year. Whereas, a total fine of Rs 33.1 crore was imposed on 41 banks in FY 2023. The data does not include co-operative banks and regional rural banks.
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Action against 16 government banks, 13 private banks
Of the penalties imposed in FY24, 35 regulatory actions were on banks including 16 public sector banks, 13 private banks, four foreign banks and one small finance bank and payments bank. There were 23 fines of Rs 1 crore or more.
