“RBI Levies ₹10.34 Crore in Penalties on Citibank, Bank of Baroda, and Indian Overseas Bank for Non-Compliance”
The Reserve Bank of India (RBI) has fined Citibank, Bank of Baroda, and Indian Overseas Bank a total of ₹10.34 crore for breaching regulatory norms. The penalties relate to various non-compliance issues, including depositor education norms, code of conduct on outsourcing financial services, and directions on loans and advances. The article details the specific violations and the RBI’s stance on these penalties.
The Reserve Bank of India (RBI) has announced penalties amounting to ₹10.34 crore imposed on Citibank, Bank of Baroda, and Indian Overseas Bank for violations of regulatory norms.
Citibank NA faces the highest penalty of ₹5 crore for non-compliance with norms related to the Depositor Education and Awareness Fund Scheme. Additionally, Citibank breached guidelines concerning the code of conduct on outsourcing financial services.
State-owned Bank of Baroda has been fined ₹4.34 crore for contravention of certain directions, including those concerning the creation of a central repository of large common exposures, among others.
Chennai-based public sector lender Indian Overseas Bank is levied with a penalty of ₹1 crore for non-compliance with directions pertaining to loans and advances.
The penalties imposed by RBI emphasize deficiencies in regulatory compliance across these banking institutions. However, the central bank clarified that these penalties do not comment on the validity of any transactions or agreements between the banks and their customers.
The RBI’s actions underscore its commitment to enforcing strict adherence to regulatory guidelines within the banking sector. These penalties aim to ensure that banks maintain compliance standards and fulfill their obligations towards regulatory directives.
The specific breaches identified in each case highlight the importance of stringent adherence to regulatory norms, emphasizing the significance of maintaining transparent and compliant banking practices.
Sources By Agencies
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