According to the central bank violation of instructions include failure to carry out due diligence in regard to suitability of products, selling derivative products to users not having risk management policies and not verifying the underlying/ adequacy of underlying and eligible limits under past performance route.

The RBI said that following the verification of alleged bank’s response to their show cause notices and oral submissions during the personal hearings, has prompted the decision to penalize these financial institutions.

RBI imposed a fine of approximately $34000 each on Axis Bank, Barclays, HDFC Bank, ICICI Bank, Kotak Mahindra and Yes Bank, while Citibank, BNP Paribas, State Bank of India, Credit Agricole -CIB, Development Credit Bank, ING Vysya Bank, Royal Bank of Scotland and Standard Chartered Bank, were fined with approximately $23000.

The Bank of America, DBS Bank, Deutsche Bank, HSBC and JP Morgan Chase Bank were fined with $11000.