Copied from Money Life e-mail dated 29.3.

2018

REPUTATION RISK CASE :

RBI fines ICICI Bank for security sales violation

IANS
29 March 2018 0

The Reserve Bank of India (RBI) said on Thursday it has imposed a

penalty of Rs 58.9 crore on ICICI Bank for non-compliance of its
directions on direct sale of securities from its held-to-maturity (HTM)
portfolio and specified disclosure.

The HTM securities are not meant for trading.

"This penalty has been imposed in exercise of powers vested in RBI

under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of
the Banking Regulation Act, 1949, taking into account failure of the
bank to adhere to the aforesaid directions/guidelines issued by the
RBI," the statement said.

The RBI said this action is based on the deficiencies in regulatory

compliance and is not intended to pronounce upon the validity of any
transaction or agreement entered into by the bank with its customers.
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Disclaimer: Information, facts or opinions expressed in this news article
are presented as sourced from IANS and do not reflect views of
Moneylife and hence Moneylife is not responsible or liable for the
same. As a source and news provider, IANS is responsible for accuracy,
completeness, suitability and validity of any information in this article.

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Source : E-mail received from Money Life dated 29.3.2018

Fraud risk in Punjab National Bank and Karnataka Bank

Gitanjali Gems defrauds Karnataka Bank of Rs86.5 cr

IANS
29 March 2018 0

Privately-run Karnataka Bank Ltd has informed the Reserve Bank of

India (RBI) that Gitanjali Gems of scam-hit Mehul Choksi had
committed a Rs 86.5 crore fraud in the fund-based working capital.

"We have reported a fraud to the RBI amounting to Rs 86.47 crore in

the fund-based working capital facilities extended to Gitanjali Gems Ltd
on account of non-realisation of export bills and diversion of funds,"
said the Mangaluru-based bank in a regulatory filing on the BSE late on
Wednesday night.

The scheduled commercial bank, however, clarified it does not have

any Letter of Understanding (LoU) exposure in Choksi's company.

"The working capital facilities were extended by the bank under

consortium arrangement and provisions will be made as per the RBI
guidelines," the bank's Company Secretary Prasanna Patil said in the
filing.

Choksi and his nephew Nirav Modi are already facing investigation in
the Rs 13,540-crore fraud they committed on the state-run Punjab
National Bank's Mumbai branch, which came to light after they left the
country in early January.

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Disclaimer: Information, facts or opinions expressed in this news
article are presented as sourced from IANS and do not reflect views of
Moneylife and hence Moneylife is not responsible or liable for the
same. As a source and news provider, IANS is responsible for accuracy,
completeness, suitability and validity of any information in this article.