New Delhi, March 29: The Reserve Bank of India (RBI) has slammed a penalty of Rs 58.9 crore on ICICI Bank for violating the directions issued by the regulator regarding direct sale of securities from its held-to-maturity (HTM) 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 apex bank said.
Banks need to disclose the amount of securities they keep under the HTM segment under which the papers are held until maturity and cannot be used for intraday trading.
The RBI allows banks to sell securities from HTM subject to certain limits and disclosure rules.