New Delhi: The Reserve Bank of India (RBI) has imposed a penalty of Rs 36.38 lakh on HSBC Limited for violation of directions on reporting requirements under the Liberalised Remittance Scheme of FEMA. The RBI had issued a show-cause notice to the bank, in response to which the bank submitted a written reply and also made oral submissions.

After considering the facts of the case and the bank’s reply in the matter, the RBI came to the conclusion that the violations were substantiated and warranted the imposition of penalty, according to a statement by the central bank. (Also Read: From HDFC To IDFC: 4 Important Credit Card Changes You Need To Know)

The RBI also said that the action is based on 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. (Also Read: HDFC Bank To Stop SMS Alerts For Small UPI Transactions Starting From THIS Date: Find Out Why)