RBI imposes Rs 4 crore penalty on Citibank

The Reserve Bank has imposed a penalty of Rs 4 crore on Citibank for non-compliance with various regulatory norms and directions of the central bank.

In a release, RBI said the penalty has been imposed on Citibank N.A. 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.