RBI slaps Rs4 cr penalty on Citibank

MUMBAI:The Reserve Bank of India (RBI) stated that Citibank NA breached certain provision of the Banking Regulations Act and the directions issued by RBI.

The regulator has slapped a monetary penalty of Rs4 crore on the bank. The RBI action pertains to the lapses committed by the bank during the financial year 2017 (FY17) and financial year 2018 (FY18).

RBI noted in a statement issued on Friday that Citibank had breached Section 10 (1) (b) (ii) of Banking Regulation Act, 1949. It also stated that the bank had failed to comply with the directions issued by RBI on obtaining declaration from customers about credit facilities enjoyed with other banks, granting non-fund based facilities to non-constituent borrowers, verifying data available in CRILC database and obtaining No-Objection Certificate (NOC) from lending banks at the time of opening current accounts, and submission of compliance to risk assessment findings

 

 

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