Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 4 crore on Citibank N.A. by order dated January 08, 2020. The bank was found to have contravened Section 10(1)(b)(ii) of the Banking Regulation Act, 1949 and to have failed to comply with RBI directions on customer declarations regarding other credit facilities, non-fund based facilities to non-constituent borrowers, verification of CRILC data, obtaining NOCs from lending banks before opening current accounts, and submission of compliance to risk assessment findings. RBI stated that the action was based on deficiencies in regulatory compliance and followed inspection findings and the bank’s reply and hearing submissions.
Action Snapshot
- Primary Impact
- Fine: Rs 4.00 Cr
- Entity Type
- Bank
- Action Type