RBI imposes monetary penalty on Citibank NA India

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹30 million on Citibank NA India by order dated January 4, 2019. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949 for deficiencies in compliance with RBI instructions on the ‘Fit and Proper’ criteria for directors of banks. RBI noted that the action was based on regulatory compliance deficiencies and was not intended to pronounce upon the validity of any transaction or agreement entered into with customers.