RBI imposes monetary penalty on Authorised Dealer Bank – The HSBC Limited

Case Brief

The Reserve Bank of India imposed a penalty of ₹36,38,000 on The HSBC Limited under Section 11(3) of FEMA, 1999. RBI said the bank violated instructions on reporting requirements under the Liberalised Remittance Scheme of FEMA, 1999. After a show-cause notice, the bank submitted written and oral responses, but RBI held that the violations were substantiated and merited penalty. RBI clarified that the action concerns regulatory compliance deficiencies and does not assess the validity of any customer transaction or agreement.