The Reserve Bank Of India (RBI) who kept a close eye on the happennings in the country after currency demonetisation took a sensational decision. RBI imposed fine on five foreign banks for violating the guidelines mentioned earlier. Standard Chartered Bank, Deutsche Bank, Bank of Tokyo Mitsubishi, The Royal Bank of Scotland and Bank of America have been slapped with a legal notice and a fine has been imposed for violating the instructions as per FEMA. FEMA is Foreign Management Exchange Act (FEMA) which has strict rules in banking system.
While Deutsche Bank has been fined with Rs 20000 all other four banks have been asked to pay Rs 10000. This decision has been taken by RBI as per the Section 11 (3) of FEMA 1999. Show cause notices have been issued to Standard Chartered Bank, Deutsche Bank, Bank of Tokyo Mitsubishi, The Royal Bank of Scotland and Bank of America and warned.
