Guidelines issued by the Reserve Bank of India were violated.
On Wednesday the Reserve Bank of India imposed a penalty on 5 foreign banks, including Standard Chartered Bank and Deutsche Bank, for violating its instructions on reporting requirements of FEMA.
The 3 other banks are:The Royal Bank of Scotland, Bank of Tokyo Mitsubishi and Bank of America.
RBI said they’ve been fined for violation of its instructions on reporting requirements of the FEMA, 1999 (Foreign Exchange Management Act).
Deutsche Bank of Germany has been imposed fine of ₹ 20,000, while other 4 banks have been fined ₹10,000 each.
RBI said it had issued show cause notices to all 5 banks, in response to which the banks have submitted written replies & made oral submissions.
After considering them RBI came to the conclusion that the violations were substantiated & thereby warranted imposition of suitable penalty.