RBI imposes monetary penalty on Authorised Dealer Bank – IDBI Bank Limited

Case Brief

The Reserve Bank of India imposed a monetary penalty on IDBI Bank Limited under Section 11(3) of FEMA, 1999. RBI found that the bank had not undertaken due diligence while processing inward remittances from a Foreign Currency Account opened by a constituent, which resulted in contravention of Section 10(4) of FEMA, 1999. After a show-cause process and consideration of the bank’s written and oral submissions, RBI concluded that the violations were substantiated and warranted penalty.