RBI imposes penalty on several Indian banks, including Citibank

Tuesday 2 June 2020 10:37 CET | News

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.

Furthermore, Urban Co-operative Bank, Ahmednagar, and TJSB Sahakari Bank Limited have also been penalised for violation of norms, including those on IRAC.
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Keywords: fines, bank, India, Reserve Bank, Citibank, credit, credit, bank account, non compliance
Categories: Fraud & Financial Crime
Countries: India
This article is part of category

Fraud & Financial Crime