Case Brief
The Reserve Bank of India penalised Citibank N.A. by Rs 25 lakh under Section 47(A)(1)(b) of the Banking Regulation Act, 1949. The penalty was for contravention of RBI guidelines and instructions on Know Your Bank (KYC) / Anti Money Laundering (AML). RBI said the bank failed to follow these norms while opening accounts, and this failure led to a fraud at its Gurgaon branch. After issuing a show cause notice, considering the bank’s written response, and hearing oral submissions, RBI concluded that the violations were substantiated and merited the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 25.0 L
- Entity Type
- Bank
- Location
- Gurgaon, Haryana
- Order Date