RBI fines ICICI Bank for security sales violation

Mumbai: The Reserve Bank of India (RBI) said, on Thursday, it has imposed a penalty of Rs 58.9 crore on ICICI Bank for non-compliance of its directions on direct sale of securities from its held-to-maturity (HTM) portfolio and specified disclosure.

The HTM securities are not meant for trading.

ALSO READ: Ram adds up to BR Ambedkar’s name in Uttar Pradesh

"This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, taking into account failure of the bank to adhere to the aforesaid directions/guidelines issued by the RBI," the statement said.

ALSO READ: Sushma Swaraj visits Tokyo for 9th India-Japan Strategic Dialogue

The RBI said that this action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

IANS