RBI imposes Rs 1.73 crore fine on HSBC

9 May 2023 , 07:47 AM

On Monday, the Reserve Bank of India said that it has fined HSBC Rs 1.73 crore for breaking regulations. The Reserve Bank of India (RBI) noted in a statement that this action is based on regulatory compliance problems and is not meant to rule on the legality of any transaction or arrangement the bank has with its clients.

The RBI conducted the bank’s statutory inspection for supervisory evaluation (lSE) with reference to its financial status as of March 31, 2021, and recorded the results of its review of the risk assessment report and any connected correspondences thereto.

In violation of the RBI’s regulations, the bank provided false credit information to all four credit information providers regarding a number of expired credit cards with no outstanding debt.

‘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,’ the statement read.

The RBI stated that it had reached the judgement that the accusation of violating the aforementioned CIC Rules was proven and called for the imposition of a monetary fine after taking into account the bank’s response to the notice and oral arguments made during the in-person hearing.

In addition, the Trichur Urban Co-operative Bank Ltd in Thrissur, Kerala, has been fined Rs 2 lakh by the central bank for failing to follow its guidelines on the management of UCBs.

The RBI said in a separate statement that it fined Bhilai Nagarik Sahakari Bank Maryadit, Bhilai (Chhattisgarh), Rs 1.25 lakh for violating or failing to comply with the Banking Regulation Act of 1949 and the Depositor Education and Awareness Fund Scheme of 2014.

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