The Central Reserve Bank has taken significant action against the foreign bank HSBC and imposed a fine of Rs 36.40 lakh. The Reserve Bank took this action against HSBC in the case of violation of the Foreign Exchange Management Act (FEMA), 1999.
In response to this matter, the Reserve Bank of India issued a statement saying that HSBC Bank was not following the laws of FEMA in the country. In such a situation, this fine has been imposed by taking action against the bank.
Show Cause Notice Was Issued To The Bank
In this case, the Reserve Bank had issued a show cause notice to HSBC earlier. The bank had put forward its side in defence, but the Reserve Bank was not satisfied with HSBC’s answer. The central bank has said that after considering the facts related to this matter and the bank’s answer, the Reserve Bank has decided that the bank was violating the rules of the Foreign Exchange Management Act, i.e. FEMA.
In such a situation, taking action on the bank, the Reserve Bank has imposed a fine of Rs 36.40 lakh on HSBC. Earlier, the bank had responded to the RBI in the matter both verbally and in writing.
RBI Imposed A Fine Of Rs 3.10 Lakh On Hero Fincorp
Earlier, the Reserve Bank of India had imposed a fine of Rs 3.10 lakh on the non-banking financial company (NBFC) Hero Fincorp. The Reserve Bank acted against the company for not following the regulatory rules. The Reserve Bank had received a complaint against the company that it had not explained the terms and conditions of the loan to the customers in writing in the local language. The Reserve Bank conducted a statutory inspection of complaints received. Taking action after being found guilty in the case, a fine of Rs 3.10 lakh has been imposed on this NBFC.
