The Reserve Bank of India (RBI) has taken strict measures against ICICI Bank Ltd., imposing a monetary penalty of ₹12.19 crore. The penalty comes in response to the bank’s contravention of specific sections of the Banking Regulation Act, 1949, coupled with non-compliance with RBI directives on various aspects including loans and advances, financial services, and fraud classification and reporting.
The penalization is rooted in the bank’s failure to adhere to the regulations outlined in sub-section (1) of Section 20 of the BR Act and related RBI directives on ‘Loans and Advances-Statutory and Other restrictions’. Additionally, ICICI Bank is found in violation of sub-section (2) of Section 6 and Section 8 of the BR Act, along with non-compliance with RBI directions regarding frauds classification and reporting by commercial banks and select financial institutions. The penalty is linked to violations related to ‘Loans and Advances-Statutory and Other Restrictions’ and ‘Frauds classification and reporting by commercial banks and select Fls’.
The RBI’s move to impose penalties shows that it is serious about making sure banks follow the rules. This is important to keep the banking sector in check and make sure everything is done the right way. It’s a signal to all banks to follow the rules and guidelines set by the RBI carefully.
ICICI Bank is expected to take corrective measures and address the identified compliance gaps to avoid further regulatory consequences. The banking industry will be closely watching how ICICI Bank responds to this penalty and the steps it takes to enhance its regulatory compliance framework.
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