Reserve Bank of India Fines Standard Chartered, ICICI Bank for Violations

The Reserve Bank of India fined ICICI Bank Ltd. and the local unit of Standard Chartered Bank Plc for violating banking rules, the central bank said in a statement today.

Both banks were fined 500,000 rupees each ($10,770), the central bank said.

The British bank did not provide information on time about a foreign currency loan it arranged for an overseas company, while India’s second-largest lender was penalized for violating customer information norms, the central bank said.

“Standard Chartered followed the highest standards of compliance in all its markets and will continue to do so,” said Beverly Mathews, a spokeswoman for the bank in Mumbai. She confirmed Standard Chartered had received the central bank’s notification.

ICICI Bank spokesman Charudatta Deshpande said the violation related to a single account opened by a customer.

“RBI concluded that the substitution of introduction by an existing customer for address proof was not in accordance with guidelines,” he said in an e-mail.

To contact the reporter on this story: V Ramakrishnan in Mumbai at rvenkatarama@bloomberg.net

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