Mumbai: The Reserve Bank of India (RBI) on Wednesday imposed a monetary penalty on Kotak Mahindra Bank and Hong Kong & Shanghai Banking Corp. Ltd for violation of instructions on reporting requirements of the Foreign Exchange Management Act (FEMA), 1999.
The central bank slapped a fine of Rs70,000 on HSBC and Rs10,000 on Kotak Mahindra Bank in exercise of the powers in RBI under the provisions of section 11(3) of the FEMA Act.
“The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank submitted a written reply and also made oral submissions thereon. After considering the facts of the case and the bank’s reply in the matter, the Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of penalty,” said the regulator.
HSBC and Kotak declined to comment.