Mumbai: The Reserve Bank of India (RBI) has levied a penalty of Rs 36.38 lakh on HSBC Limited for breaching reporting requirements under the Liberalised Remittance Scheme of FEMA.
Following issuance of a show-cause notice to the bank, HSBC Limited provided a written response and presented oral submissions during the proceedings. Upon reviewing the case details and the bank’s submissions, the RBI determined that the violations were substantiated and justified the imposition of the penalty, as stated in a release by the central bank.
The RBI clarified that the penalty is a result of deficiencies in regulatory compliance and does not imply any judgment on the validity of transactions or agreements entered into by the bank with its customers.