RBI slaps fines on 19 banks for violations

RBI slaps fines on 19 banks for violations

  In a release on its website, RBI said these banks have not carried out due diligence in regard to suitability of products. 

That apart, these banks were found selling derivative products to users not having risk management policies and also not verifying the underlying or adequacy of underlying and eligible limits under past performance route, it added.

Those banks have been slapped with penalties ranging from Rs 5 lakh to Rs 15 lakh, RBI said.

Nineteen banks are Axis Bank, Barclays Bank PLc, HDFC Bank, ICICI Bak, Kotak Mahindra Bank, Yes Bank, BNP Paribas, Citibank NA, Credit Agricole, Development Credikt Bank, ING VYsya, Royal Bank of Scotland, Standard Chartered, State Bank of India, Bank of America, DBS Bank, Deutsche Bank, Hongkong and Shanghai Banking Corporation and JP Morgan Chase.

RBI had issued Show Cause Notices to these banks and in response to this, the above mentioned banks submitted their written replies.

On a careful examination of the banks’ written replies and the oral submissions made during the personal hearings, the Reserve Bank found that the violations were established and the penalties were thus imposed.

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