RBI fines HSBC over FEMA violations

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MUMBAI:

RBI

on Wednesday

imposed a fine

of Rs 36.4 lakh on foreign lender

HSBC

for Foreign Exchange Management Act (FEMA) violations. RBI said reporting requirements under the Liberalised Remittance Scheme of FEMA, 1999 were not followed by HSBC. RBI had issued a show cause

notice

to HSBC, in response to which the bank submitted a written reply and also made oral submissions.

“RBI came to the conclusion that the violations were substantiated and warranted imposition of a penalty,” it said. agencies