RBI imposed penalty on banks totaling Rs 10.34 crore for violations of banking norms

Nov26,2023 #BANK #Penalty #RBI #Violation

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Published on: November 26, 2023 at 13:18 IST

The Reserve Bank of India (RBI) imposed penalties totaling Rs 10.34 crore on Citibank, Bank of Baroda, and Indian Overseas Bank for violations of banking norms.

Citibank NA is facing a fine of Rs 5 crore for non-compliance with norms related to the depositor education and awareness fund scheme, as well as the code of conduct on outsourcing of financial services and Know Your Customer (KYC) norms, according to the RBI.

Meanwhile, the public sector Bank of Baroda has been penalized Rs 4.34 crore for contraventions of specific directives concerning the establishment of a central repository of large common exposures, among other violations.

Additionally, a penalty of Rs 1 crore has been imposed on the government-owned Indian Overseas Bank for deviations from guidelines related to loans and advances.

The RBI clarified that the penalties imposed on these three banks are rooted in deficiencies in regulatory compliance and do not impact the validity of any transactions or agreements made with their customers.

This move underscores the central bank’s commitment to upholding banking norms and ensuring adherence to regulatory frameworks within the financial sector.

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