- On May 29, the Reserve Bank of India imposed a penalty of Rs 36.38 lakh on foreign lender HSBC for violating the Foreign Exchange Management Act (FEMA).
- The central bank said HSBC did not comply with the reporting requirements under the Liberalised Remittance Scheme of FEMA, 1999.
- HSBC was issued a show cause notice by the RBI, in response to which the bank filed a written reply and also made oral submissions.
- After considering the facts of the case and the bank's reply, the RBI came to the conclusion that the violation was substantiated and imposition of penalty was justified.
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Economics
