New Delhi: The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1.00 crore on ICICI Bank Limited for failing to comply with specific guidelines on ‘Loans and Advances – Statutory and Other Restrictions’.
The fine issued on May 21, 2024 falls under the jurisdiction of the RBI as laid down in the Banking Regulation Act, 1949.
1.00 crore to ICICI Bank Limited (the Bank) for non-compliance of certain directions issued by the RBI on ‘Loans and Advances – Statutory and Other Restrictions’, vide order dated May 21, 2024 by the Reserve Bank of India (RBI). of Rs (Rs. one crore only) imposed a monetary penalty.
The penalty was imposed by RBI’s Statutory Inspection for Supervisory Assessment (ISE 2022), which assessed the bank’s financial condition till March 31, 2022. After supervisory observations of non-compliance with RBI directives, the bank was given a notice and given an opportunity to present its case.
The RBI found the bank guilty of various violations, including sanctioning term loans to entities without due diligence on project viability and revenue flows and not ensuring funding proposals for specific projects. These loans are reportedly serviced using budgetary resources rather than project-generated revenue.
According to the circular, this penalty does not imply a judgment on the legality of transactions between the bank and its customers. Further, the RBI has clarified that the penalty is separate from any additional action that may be taken against the bank for regulatory compliance.
On Monday, ICICI Bank shares traded at 1,129.55 For Rs ended, which was 0.21 percent lower than the previous day’s close.
