RBI has imposed a penalty of 36.38 lakh rupees on this bank

The Reserve Bank of India (RBI) on Wednesday slapped foreign lender HSBC with a fine of Rs. A fine of 36.38 lakhs has been imposed. The RBI said in a statement that HSBC did not comply with the provisions of the FEMA Act, 1999 to provide information required under the Liberalized Remittance Scheme.

Confirmation of Violation of Rules: In this regard, the Reserve Bank of India issued a show cause notice to HSBC. Besides giving a written reply to the notice, the bank also presented its side orally. The Reserve Bank said that after considering the facts connected with the case and the reply received from the bank, the Reserve Bank of India has come to the conclusion that the violation of the rules has been confirmed and the imposition of penalty is appropriate.

Hero Fincorp Limited has also been fined

Earlier, the RBI had slapped Hero Fincorp Limited with a fine of Rs. A fine of 3.1 lakh was imposed. Hero Fincorp did not inform the borrowers in writing about the loan terms and conditions in a local language they understood.

₹74 crore fined on 64 banks and NBFCs

The Reserve Bank has imposed a financial penalty of ₹74.1 crore on 64 banks and NBFCs during the financial year. While in the financial year 2023, a total penalty of 33.1 crore rupees was imposed on 41 banks. Data excludes cooperative banks and regional rural banks.

Proceedings against 16 government banks, 13 private banks

Of the penalties imposed in FY24, 35 regulatory actions were taken against banks, including 16 public sector banks, 13 private banks, four foreign banks and one small finance bank and a payments bank. 23 fines of 1 crore or more were imposed.