RBI SHOCK TO ICICI

Mumbai, March 30, (way2newstv.in):

RBI shock to ICICI. Reserve Bank of India (RBI) has imposed a fine on ICICI, the largest private sector bank, which violated the terms of the sale of securities. In order to sell the loan securities violating the rules, The RBI has issued a statement on March 26 to pay Rs 58.9 crores. These measures have been taken in view of the provisions of the regulatory norms and the RBI has stated that it does not intend to say about the validity of bank transactions and customer contracts. ICICI shares lost 2 per cent this morning with the RBI statement. ICICI Bank has a Held-To-Maturity (HTM), Evaluation for Sale, Held for Trading and Vertical Category Bonds.

RBI SHOCK TO ICICI

Banks do not need to follow the rules if the value of the market interest rates increases with the value of the HTM section bonds. Banks must necessarily invest in government bonds as part of their deposits. These bonds can not be sold unless the market value changes. So, only 5 per cent of their HTM securities can be sold by the bank. To sell more then the permission from the RBI should be taken. Only one year from the board of directors is mandatory. This will happen at the beginning of the financial year. In addition, the details of the report should be disclosed. But the ICICI has been informed that the RBI has been penalized for violating these rules.