RBI imposes monetary penalty on Authorised Dealer Bank – Bank of America, N.A.

Case Brief

The Reserve Bank of India imposed a monetary penalty on Bank of America, N.A. under Section 11(3) of FEMA, 1999. The penalty was for violation of RBI instructions on reporting requirements under the Liberalised Remittance Scheme. RBI issued a show-cause notice, considered the bank’s written and oral submissions, and concluded that the violations were substantiated and warranted penalty. RBI also stated that the action pertains to regulatory compliance deficiencies and does not pronounce on the validity of any transaction or agreement with customers.