On Monday, Reserve Bank of India said that it has imposed a penalty of about 3 crore on ICICI Bank for the reason that the Bank has infringed certain directions which was given by RBI that on valuation and operation of investment portfolio by banks. These provision were given under the Banking Regulation Act. The penalty was imposed because of exercise of powers which were provided according to Banking Regulation Act.
The Specific directions issued by RBI including of the examining of the issues about Bank regarding payments in course of it’s employees in the form of commission, inter alia contravention etc according to the provisions of the Act.
RBI has issued a notice to the Bank, that notice explains that the advisory statements had been provided to the Bank to show certain causes , why penalty should not be imposed for contravention of the provisions of the Act which were specially directed. Bank had replied to the notice , after considering the personal hearing and examination of additional submission made it by RBI.
RBI came to the conclusion that the aforesaid charges were substantiated and warranted imposition of monetary penalty.