Action against ICICI, HDFC & Axis Bank after they reply to show-cause notice

Finance Ministry says active discussions on hiking penalty for violations goin on

Finance ministry today reasserted that action on top three private banks that were named in Cobrapost's first 'sting' report  would be taken once they reply to show cause notices sent by the Reserve Bank of India.
 
“The RBI has clarified that they have issued show cause notices to the banks concerned and they are probably waiting for the reply” said Rajiv Takru, financial services secretary here today.  

“This is the final stage before any action is taken,” he further added.

To the question on RBI top brass’ comment not match the findings of the report which came out in media, Takru said, “I’m not sure what has come in media (but) the RBI report is anyway being acted upon and RBI can only take a final stand when the show cause notice is being replied to,” he said, adding that “so I don't think you should take any statements by anyone as finality in this case”

Takru also said that there were ongoing discussions on hiking the penalty limit for the violations, which currently stands at Rs 1 crore per violation.

“This was discussed in the RBI board and a point was made that the penalty amount is probably less” Takru said.

He further added, “there is active discussion going on now on increasing limit of penalty and it is something which is under consideration.”