RBI fines ICICI Bank Rs 58.9 crore for violating directions

Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 58.9 crore on ICICI Bank Limited for non-compliance with directions issued by RBI on direct sale of securities from its Held-to-Maturity portfolio and specified disclosure in this regard.

"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," the RBI said in a statement. Banks have to compulsorily keep 19.5 per cent of their deposits in government securities as statutory liquidity ratio (SLR).

It said the penalty was imposed in exercise of powers vested in RBI under the Banking Regulation Act, 1949. This action, RBI said, was based on the deficiencies in regulatory compliance.

(With agency inputs)