RBI fines ICICI Bank for security sales violation

Mumbai March 29 (IANS) The Reserve Bank of India (RBI) said on Thursday it has imposed a penalty of Rs 58.9 crore on ICICI Bank for non-compliance of its directions on direct sale of securities from its held-to-maturity (HTM) portfolio and specified disclosure.

The HTM securities are not meant for trading.

"This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act 1949 taking into account failure of the bank to adhere to the aforesaid directions/guidelines issued by the RBI " the statement said.

The RBI said this action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

--IANS
ag/mr/ksk