Mumbai: The Reserve Bank of India (RBI) imposed a penalty of Rs 10.34 crore on 3 banks. The apex bank imposed 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.
‘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.
A penalty of Rs 4.34 crore has been imposed on public sector Bank of Baroda for violation of certain directions related to the creation of a central repository of large common exposures, and others.
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Another Rs 1 crore penalty was levied on government-owned Indian Overseas Bank for contravention of directions concerning loans and advances.
The Reserve Bank of India also clarified that the penalties on the three banks are based on deficiencies in regulatory compliance and do not have a bearing on the validity of any transaction or agreement entered into with their customers.
Recently, the RBI also imposed Rs 90 penalty on Axis Bank and Rs 42.78 Lakh Fine on Manappuram Finance.
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