The Reserve Bank of India (RBI), in an official release on Friday, said that it has imposed a Rs 4 crore penalty on Citibank for violating the Banking Regulation Act and not adhering to the instructions issued by the central bank. It is also said that the action has been taken as the bank was not clinched to the Non-Compliance of Regulations.
“This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. RBI also winded that the charges of non-compliance with RBI directions validated infliction of monetary penalty, according to a release.
The RBI also informed that Citibank was earlier warned with a notice and that the penalty has been thrust by an order dated 8th January’ 2020. According to the release information, RBI decided to impose the penalty following the bank’s reply to the notice, oral submissions made during the personal hearing and examination of additional submissions.
However, it has been clarified by the Reserve Bank of India that this particular action will not in any way affect the customers of the bank.