Today vide Press Release, Reserve Bank of India has informed to the public at large, that it imposed a penalty of Rs 5.00 lakh on JP Morgan Chase, N.A., Mumbai (the bank).
The penalty was imposed in exercise of the powers vested with it under the provisions of Section 47A(1)(b) read with Section 46(4)(i) of the Banking Regulation Act, 1949.
The penalty has been imposed on the bank for contraventions of various directions and instructions issued by the Reserve Bank in respect of Risk Management and Inter Bank Dealings and Compliance Functions. These contraventions took place during the year 2011-2012.
RBI issued a show cause notice, to which the Bank replied. RBI has gone through the reply and the documents on record, and Reserve Bank found that the violations were conclusively established and a penalty of Rs 5.00 lakh was thus imposed.
JP Morgan Chase Bank has very few branches in India, and is primarily focused on Corporate and Investment Banking. Hence, the majority of Indians, would not have heard this bank name at all.
- RBI penalises JP Morgan Chase (rediff.com)
- JP Morgan profit jumps 33% as picture brightens (thetimes.co.uk)
- JP Morgan makes record profit (bbc.co.uk)