RBI slaps ₹4 crore fine on Citibank

The Reserve Bank of India (RBI) has slapped ₹4 crore penalty on Citibank for violating several norms.

The banking regulator said the penalty was due to contravention of the Banking Regulation Act, 1949 and for for non-compliance with the directions issued by RBI on obtaining declaration from customers about credit facilities enjoyed with other banks, granting non-fund based facilities to non-constituent borrowers, among others.

RBI said the statutory inspection of the Indian operations of the bank for its financial positions as on March 31, 2017 and March 31, 2018 and the Risk Assessment Reports (RARs) revealed contravention with the provisions of the Act and non-compliance with some norms.