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RBI imposes monetary penalty on five banks for violation of reporting requirements of FEMA

Deutsche Bank Has Been Fined Rs 20,000 While Rs 10,000 Each Has Been Imposed On Bank Of America, Bank Of Tokyo Mitsubishi, The Royal Bank Of Scotland, Standard Chartered Bank For FEMA Violation.

News Nation Bureau | Edited By : Hina Khan | Updated on: 21 Dec 2016, 07:01:07 PM
Reserve Bank of India (Getty Images)

New Delhi:

Reserve Bank of India (RBI) on Wednesday imposed monetary penalty on five banks for violation of its instructions on reporting requirements of Foreign Exchange Management Act, 1999.

Penalties have been imposed on these five banks:

-Bank of America

-Bank of Tokyo Mitsubishi

-Deutsche  Bank

-The Royal Bank of Scotland and 

-Standard Chartered Bank

Deutsche Bank has been fined Rs 20,000 while Rs 10,000 each has been imposed on Bank of America, Bank of Tokyo Mitsubishi, The Royal Bank of Scotland, Standard Chartered Bank for FEMA violation.

The Reserve Bank had issued a show cause notice to the banks following which banks submitted written replies and also made oral submissions.

RBI later in a press release statement, said that penalties have been imposed after considering facts of cases and banks’ replies in matter.

FEMA is an act of Indian Parliament related to the law governing foreign exchange with an aim to facilitate external trade and payments.

ALSO READ: (RBI takes big U-turn, modifies cash deposit rules again and exempts KYC accounts from Rs 5000-cap in old Rs 500, Rs 1,000 banknotes)

FEMA also promotes orderly development and maintenance of foreign exchange market in India.

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First Published : 21 Dec 2016, 05:02:00 PM

Related Tags:

RBI Penalty FEMA

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