RBI imposed monetary penalty of Rs 75 lakh on ICICI Bank

New Delhi: The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 75 lakh (Rupees Seventy Five Lakh only) on ICICI Bank Limited (the bank) for non-compliance with certain directions issued by RBI on ‘Valuation of Properties - Empanelment of Valuers’ and ‘Opening of Current Accounts by Banks – Need for discipline’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.

The Statutory Inspection for Supervisory Evaluation (ISE 2024) of the bank was conducted by RBI with reference to its financial position as on March 31, 2024. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions.
 

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After considering the bank’s reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI found that the following charges against the bank were sustained, warranting imposition of monetary penalty:

• The bank did not carry out valuation of properties by independent valuers in certain mortgage loans.

• The bank opened / maintained certain current accounts in contravention of extant regulatory requirements.

The action is based on 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. Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.