RBI imposes a fine of Rs 36.38 lakh on HSBC for violating FEMA regulations

The Reserve Bank on Wednesday imposed a penalty of Rs 36.38 lakh on foreign lender HSBC for violations of the Foreign Exchange Management Act (FEMA). The central bank found that HSBC failed to comply with reporting requirements under the 1999 liberalized FEMA cash transfer program.

The RBI issued a show cause notice to HSBC, to which the bank responded in writing and also submitted oral observations.

“After considering the facts and the bank’s response in this matter, the Reserve Bank of India has concluded that the violations were substantiated and warranted the imposition of penalty,” it said.