New Delhi, June 18
After reports surfaced that Standard Chartered is facing RBI regulatory scrutiny in India over alleged lapses in derivatives sales, the lender on Wednesday said the Reserve Bank conducts annual inspections of banks, and this is just part of a routine examination.
According to reports, the central bank raised concerns following alleged sales by the lender to small and medium-sized enterprises of target redemption forwards, "a product that can cause significant losses".
The RBI also raised issues regarding the bank’s maintenance of reserves and the accounting treatment of forward rate agreement trades in previous fiscals.
A Standard Chartered spokesperson told that the Reserve Bank conducts an annual inspection of banks.
"While we don’t want to comment on specifics, observations, if any, are highlighted and addressed as part of the normal process," the spokesperson added.
The RBI was yet to react to the reports.