RBI Charges Two Banks For Rules Violation

Credit Agricole – Corporate & Investment Bank and Karnataka Bank have been penalized by the Reserve Bank of India.

Credit Agricole – Corporate & Investment Bank and Karnataka Bank have been penalized by the Reserve Bank of India (RBI), The Hindu Business Line reports. The banks were charged with non-compliance with the Indian central bank’s directives on derivatives.

The French bank was penalized for failing to conduct proper due diligence on user-appropriateness and suitability of products. Karnataka Bank was also charged with failing to carry out proper due diligence on user those two counts, as well as with an inability to document the pricing, periodical valuation of products and quantify financial risks in derivatives.

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