The Reserve Bank has imposed a penalty on Citibank for non-compliance with various regulatory norms and directions of the central bank.
The penalty has been imposed on Citibank for contravention of certain sections of the Banking Regulation Act and for non-compliance with directions. The directions pertained to 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 NOC from lending banks at the time of opening current accounts, and submission of compliance to risk assessment findings.
The RBI has also imposed penalty on three co-operative banks for non-compliance with various directions issued by it. A penalty has been imposed on Bharat Co-operative Bank (Mumbai) for non-compliance with directions on income recognition and asset classification (IRAC) norms and frauds classification and reporting.
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