Mumbai: Due to non-compliance with norms, the Reserve Bank of India (RBI) has levied a penalty of Rs 1.73 crore on HSBC.
The penalty is imposed because of the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, the RBI said in a statement.
The Statutory Inspection for Supervisory Evaluation (lSE) of the bank was conducted by the RBI with reference to its financial position as of March 31, 2021, and the examination of the risk assessment report and all related correspondences pertaining to the same revealed, it noted.
The Bank has provided incorrect credit information in respect of several expired credit cards with nil dues to all four credit information companies.
“In furtherance to the same, a notice was issued to the bank, advising it to show cause as to why penalty should not be imposed for contravention of the said provisions of CIC Rules, as stated therein,” it said.
After considering the bank’s reply to the notice and oral submissions made during the personal hearing, the RBI came to the conclusion that the charge of contravention of the aforesaid CIC Rules was substantiated and warranted the imposition of a monetary penalty, it said.
Similarly, RBI has also imposed a monetary penalty of Rs 2 lakh on the Trichur Urban Co-operative Bank, Thrissur, Kerala for non-compliance with directions issued by the central bank on Management of Advances – UCBs.
In a separate statement, the RBI said it has imposed a monetary penalty of Rs 1.25 lakh on Bhilai Nagarik Sahakari Bank Maryadit, Bhilai (Chhattisgarh) for contravention of/non-compliance with the provisions of the Banking Regulation Act, 1949, and the Depositor Education and Awareness Fund Scheme, 2014.
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