The Reserve Bank of India has imposed a penalty of Rs 5 crore on Citibank, Rs 4.34 crore on Bank of Baroda, and Rs 1 crore on Indian Overseas Bank
The Reserve Bank of India (RBI) on Friday, November 24, imposed a penalty of Rs 5 crore on Citibank, Rs 4.34 crore on Bank of Baroda, and Rs 1 crore on Indian Overseas Bank (IOB) for non-compliance with norms.
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“The Reserve Bank of India (RBI) has, by an order dated November 02, 2023, imposed a monetary penalty of Rs 5.00 crore on Citibank N.A. for contravention of Section 26A of the Banking Regulation Act, 1949 read with Paragraph 3 of ‘The Depositor Education and Awareness Fund Scheme, 2014 – Section 26A of Banking Regulation Act, 1949 – Operational Guidelines’, Section 10(1)(b)(ii) of the BR Act, and non-compliance with RBI Directions on ‘Managing Risks and Code of Conduct in Outsourcing of Financial Services by banks’ read with ‘Reserve Bank of India (Know Your Customer (KYC)) Direction, 2016’,” the RBI said in a statement.
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On Bank of Baroda, the RBI imposed a Rs 4.34 crore fine “for non-compliance with certain directions issued by RBI on ‘Creation of a Central Repository of Large Common Exposures – Across Banks’ dated September 11, 2013 read with ‘Central Repository of Information on Large Credits (CRILC) – Revision in Reporting’ dated February 13, 2014, ‘Loans and Advances – Statutory and Other Restrictions’, and ‘Reserve Bank of India (Interest Rate on Deposits) Directions, 2016′”.
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The Rs 1 crore penalty on Indian Overseas Bank has been imposed by the RBI “for non-compliance with certain directions issued by RBI on ‘Loans and Advances – Statutory and Other Restrictions’”.
Recently, the RBI also imposed Rs 90 penalty on Axis Bank and Rs 42.78 Lakh Fine on Manappuram Finance.
