Reserve Bank of India imposes monetary penalty on ICICI Bank Limited

Case Brief

The Reserve Bank of India imposed a monetary penalty on ICICI Bank Limited through an order dated March 26, 2018. The penalty was levied for non-compliance with RBI directions on the direct sale of securities from the bank's Held-to-Maturity (HTM) portfolio and the specified disclosure requirements related to such sales. RBI said the penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, based on deficiencies in regulatory compliance, and clarified that the action does not pronounce on the validity of any transaction or agreement entered into by the bank with its customers.