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    Question

    Why did RBI impose a penalty of Rs 10,000 each on Bank

    of America, N.A. and HDFC Bank Ltd.?
    A Violating directions related to deposit acceptance Correct Answer Incorrect Answer
    B Violating FEMA reporting requirements Correct Answer Incorrect Answer
    C Non-compliance with various regulatory norms Correct Answer Incorrect Answer
    D Involvement in fraudulent activities Correct Answer Incorrect Answer
    E Failure to meet capital adequacy ratio Correct Answer Incorrect Answer

    Solution

    Bank of America, N.A. was penalized for violating RBI's instructions on reporting requirements under the Liberalised Remittance Scheme of FEMA 1999. HDFC Bank faced a penalty for violating directions related to the acceptance of deposits from non-residents.

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