RBI fines StanChart, ICICI Bank

Reuters | Sat Jul 31, 2010 | 9:37am IST

The Reserve Bank of India (RBI) has fined Standard Chartered Bank and ICICI Bank 500,000 rupees ($10,776) each for violating regulations, the central bank said on Friday. Standard Chartered was penalised for not furnishing within the stipulated time information on a foreign currency loan facility arranged by the bank for an offshore special purpose vehicle, the Reserve Bank of India (RBI) said. “We have received the RBI notification. Standard Chartered Bank follows the highest standards of compliance in all its markets and will continue to do so,” a spokeswoman for the British bank in India said.

The Reserve Bank said ICICI Bank, the country’s No.2 lender, was fined for violating central bank guidelines on “know your customer” and money laundering standards. ICICI Bank said the violations referred to an account opened for a single customer for which the lender had obtained a government identity card and introduction from an existing customer. “RBI concluded that the substitution of introduction (by an existing customer) for address proof was not in accordance with RBI guidelines,” ICICI Bank said in a statement.

($1=46.4 rupees)

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