RBI Imposes Rs3 Crore Penalty on ICICI Bank for Violating Investment Portfolio Norms
The Reserve Bank of India (RBI) has imposed a penalty of Rs3 crore on ICICI Bank for violating prudential norms on the operation of its investment portfolio.
RBI says it found contravention of norms in the matter of "shifting of securities from one category to another".
However, the central bank has not mentioned details of when the violation happened, or the exact nature of it.
RBI said that the penal action was based on the deficiencies in regulatory compliance and was “not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.”
Earlier, a show cause notice was issued to ICICI Bank asking why penalty should not be imposed on it for failure to comply with the directions issued by RBI.
“After considering the bank’s reply to the notice, oral submissions made in the personal hearing and examination of additional submissions made by it, RBI came to the conclusion that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty,” the central bank says.