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RBI fined Citi Bank Rs 39 lakh for its negligence to keep up with the regulations
RBI: The Reserve Bank of India has imposed a fine of Rs 39 lakh on Citi Bank NA for not following the instructions. The bank did not follow the rules related to risk. Also, there was a delay in giving information about the loan to the credit information companies (CIC). The Reserve Bank had found this irregularity during the evaluation of the financial position of Citi Bank till March 31, 2023.
Reserve Bank penalized the Citi Bank NA to the tune of Rs 39 lakh for the failure to comply with the instructions. The bank did not comply with the instructions in the case of the risks. The bank also delayed furnishing the details about the loan to the credit information companies (CIC). Reserve Bank detected the anomaly during the examination of the financial health of the Citi Bank till March 31, 2023. The Reserve Bank penalized other companies also.
RBI said the show cause notice to the Citi Bank NA for failure to comply with the instructions. It said that why should it not be fined for failing to comply with RBI's instructions? After considering the reply received from the bank regarding the notice and the oral reply given personally, RBI found that the bank had reported some violations in the risk limits late. After this, the bank did not upload revised data related to some segments within seven days of receiving the rejection report from the credit information companies.
Apart from this, RBI imposed a fine of Rs 1.50 lakh on JM Financial Home Loans Limited for not complying with some provisions of the Non-Banking Financial Company Housing Finance (Reserve Bank) Directions, 2021. At the same time, a fine of Rs 6.20 lakh has been imposed on Ashirvad Micro Finance Limited for following the rules. RBI said that in all cases the fine is based on deficiencies in compliance with the rules. This does not mean questioning the validity of any transaction or agreement made by the institutions with their customers.
