Millennium Post

RBI fines ICICI Bank Rs 59 cr for breaking bond sale rules

Mumbai: The Reserve Bank of India (RBI) has imposed a penalty of Rs 58.9 crore on the country's leading private sector lender ICICI Bank for violating its directions on direct sale of securities. "The Reserve Bank of India (RBI) has imposed through an order dated March 26, 2018, a monetary penalty of Rs 589 million on ICICI Bank Limited for non-compliance with directions issued on direct sale of securities from its HTM (held-to-maturity) portfolio and specified disclosure in this regard," the central bank said in a notification issued on Thursday.
ICICI Bank said that the violation was "due to a genuine misunderstanding on the timing of the applicability of RBI's directions in this matter". It said, "The RBI has imposed a penalty on the bank for continued sale of government securities classified as HTM."
The bank said it continued with the sales from HTM category for a few weeks during the quarter ended March 31, 2017. It further said that it would give utmost importance to regulatory compliance and endeavours to meet supervisory expectations.
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