RBI penalizes Credit Agricole – Corporate & Investment Bank and Karnataka Bank for Non-Compliance with Its Directives on Derivatives


Today, Reserve Bank of India, has issued a Press Release stating that Credit Agricole – Corporate & Investment Bank and Karnataka Bank have been penalized for Non-Compliance with Its Directives on Derivatives

The quantum of penalty on Credit Agricole – Corporate & Investment Bank is Rs10lacs and on Karnataka Bank is Rs.5lacs.

The Press Release can be accessed @ http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=25046

The penalty on Credit Agricole – Corporate & Investment Bank has been imposed for failing to carry out proper due diligence on user appropriateness and suitability of products and the compliance function in the bank failing to ensure strict observance of all statutory provisions contained in various legislations, issued by the Reserve Bank in respect of derivative transactions.

Crédit Agricole CIB is present in more than 50 countries, and has 13,000 + employees to cater to it’s customers.

In India, Crédit Agricole CIB entered in 1981, and currently is present in in Ahmedabad, Bangalore, Chennai, Delhi, Mumbai and Pune.

 

CA-CIB India

NO FRILLS POLICY

Extracted from Bank’s Website.

 

Sr.No Particulars Tariff (wef July 2010)

1.        Issue of local drafts/cashiers cheques INR 750 + Service Tax

2.        Foreign Currency Drafts – Issuance INR 1000 + Service Tax

3.        Inward Foreign Telegraphic Transfer INR 500 + Service Tax

4.        Outward Foreign Telegraphic Transfer INR 1000 + Service Tax

5.        Cancellation of Drafts/ Issue of Duplicate Drafts INR 1000

6.        Cash handling charges INR 50 per INR 1000, minimum

INR 100 plus service tax on all receipt and payment transactions

7.        Issue of Cheque books NIL

8.        Cheque Return charges (Inward/Outward Cheques) INR 50 per cheque

9.        Issue of duplicate statement of account. INR 50 per statement

10.      Recording of stop payment instructions INR 100 per cheque

11.      Charges for revival of dormant account NIL

12.      Account Opening/Closing charges NIL

All other charges as per standard Schedule of Charges.

 

————————————————————————————

 

The penalty on Karnataka Bank Limited has been imposed for failing to carry out proper due diligence on user appropriateness and suitability of products and failing to document the pricing, periodical valuation of products and quantifying financial risks in derivatives.

Karnataka Bank is 87+years old, with its headquarters in Mangalore, Karnataka.

During it journey of 87 years, it has added 483 branches and taken into it’s fold,  Sringeri Sharada Bank Ltd., Chitradurga Bank Ltd. and Bank of Karnataka.

They took over  the three Banks in the period 1960-1966.

Sringeri Sharada Bank Ltd., in 1960.

Chitradurga Bank Ltd. , in 1964

Bank of Karnataka., in 1966.

Karnataka’s Banks ‘no-frills’, account is christened as  “S.B. – SUGAMA”

 

 

 

 

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