A penalty of Rs 36.38 lakh was imposed on HSBC by RBI for violation of FEMA rules.
On May 29, a penalty of Rs 36.38 lakh imposed on foreign lender HSBC by the Reserve Bank of India for violations of the Foreign Exchange Management Act (FEMA).
The central bank said HSBC did not comply with the reporting requirements under the Liberalised Remittance Scheme of FEMA, 1999.
A show cause notice was issued to HSBC by the RBI, in response to which the bank filed a written reply and also gave oral submissions.
After considering the facts of the case and the bank’s reply, the Reserve Bank of India concluded that the violations were substantiated and the imposition of penalty was justified.
