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Fine on ICICI Bank – RBI
April 3 , 2018
2480 days
1120
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- The Reserve Bank of India (RBI) has slapped a penalty of Rs.9 crore on ICICI Bank Limited for non-compliance of directions issued by it.
- The penalty has been imposed in exercise of powers vested in RBI under the provisions of the Banking Regulation Act, 1949.
- RBI has imposed a penalty on the Bank for continued sale of government securities classified as HTM.
- This is the highest penalty imposed by RBI on a bank for a single incident.
- RBI guidelines require banks to classify investments into three categories - Held for Trading (HFT), Available for Sale (AFS) and Held to Maturity (HTM).
- The securities acquired by the banks with the intention to hold them till maturity can be classified under HTM.
- If the value of sales of securities from HTM category exceeds 5% of the HTM investments, banks are required to disclose in the audited annual financial statements.
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