RBI fines HSBC for FEMA violations

The Reserve Bank imposed a fine of Rs 36.38 lakh on HSBC, a foreign lender, for violating the Foreign Exchange Management Act (FEMA). The violations were related to the reporting requirements under the Liberalised Remittance Scheme of FEMA, 1999.

The RBI had issued a show cause notice to HSBC, to which the bank responded in writing and also made oral submissions. After reviewing the facts and the bank’s response, the Reserve Bank of India determined that the violations were indeed substantiated and warranted the imposition of a penalty.