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The Reserve Bank of India (RBI) has imposed a penalty of Rs.58.9 crore on ICICI Bank, for failure to abide by rules on sale of bonds in the held to maturity (HTM) category.
RBI in a statement said, “The Reserve Bank of India (RBI) has imposed through an order dated March 26, 2018, a monetary penalty of Rs.589 million on ICICI Bank Limited (the bank) for non-compliance with directions issued by RBI on direct sale of securities from its HTM portfolio and specified disclosure in this regard.”
Further, RBI did not give any details on how ICICI Bank failed to comply with the regulations, but 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 intra-day trading.
