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RBI imposes Rs 589 million penalty on ICICI Bank for not following guidelines

The penalty is for non-compliance with directions issued by the central bank on direct sale of securities from its HTM (held-to-maturity) portfolio and specified disclosure in this regard.

business Updated: Mar 29, 2018 15:18 IST
Reuters
ICICI Bank,RBI,RBI imposes penalty on ICICI bank
Banks need to disclose the amount of securities they keep under the ‘held-to-maturity’ segment under which the papers are held until maturity and cannot be used for intraday trading.(Ramesh Pathania/HT Photo)

The Reserve Bank of India (RBI), in a rare move, imposed a penalty of Rs 589 million ($9.04 million) on ICICI Bank Ltd, the country’s third biggest lender, for failure to adhere to held-to-maturity (HTM) guidelines.

The penalty is for non-compliance with directions issued by the Reserve Bank of India on direct sale of securities from its HTM portfolio and specified disclosure in this regard, the RBI said in a statement on Thursday.

The central bank did not elaborate on how ICICI Bank failed to comply with its norms.Banks need to disclose the amount of securities they keep under the HTM segment under which the papers are held until maturity and cannot be used for intraday trading.

The RBI allows banks to sell securities from HTM subject to certain limits and disclosure rules.

First Published: Mar 29, 2018 11:42 IST