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Business News/ Money / RBI slaps penalties totaling 10.34 crore on Citibank, Bank of Baroda, and Indian Overseas Bank for non-compliance
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RBI slaps penalties totaling ₹10.34 crore on Citibank, Bank of Baroda, and Indian Overseas Bank for non-compliance

The apex bank regulatory body made it clear that the action is based on the 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.

Reserve Bank of India RBI building (photo:pradeep gaur/mint)Premium
Reserve Bank of India RBI building (photo:pradeep gaur/mint)

The Reserve Bank of India on 24 November slapped penalties totaling 10.34 crore on Citibank, Bank of Baroda, and Indian Overseas Bank for contravention of norms.

The apex bank regulatory body made it clear that the action is based on the 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.

According to three different notifications, released by the RBI, the apex bank imposed a fine of one crore on Indian Overseas Bank for non-compliance with certain directions issued by it on ‘loans and advances – statutory and other restrictions’.

While, 5 crore penalty has been imposed on Citibank for non-compliance with certain directions including 'operational guidelines, managing risks and code of conduct in outsourcing of financial services by banks’ and 'the depositor education and awareness fund scheme, 2014'.

A monetary penalty of 4.34 crore has been imposed by the RBI on the Bank of Baroda for non-compliance related to ‘loans and advances – statutory and other restrictions’, and ‘Reserve Bank of India (interest rate on deposits) directions, 2016’.

Action on co-operative banks:

Earlier on 23 November, the RBI imposed monetary penalties on five co-operative banks for deficiencies in regulatory compliance.

ALSO READ: RBI imposes monetary penalty on five co-operative banks. Details here

These co-operative banks are: Shri Mahila Sewa Sahakari Bank Ltd, Porbandar Vibhagiya Nagarik Sahkari Bank Ltd, Sarvodaya Nagarik Sahakari Bank Ltd, The Khambhat Nagarik Sahakari Bank Ltd and The Vejalpur Nagarik Sahkari Bank Ltd.

The Reserve Bank had imposed a monetary penalty of 2.50 lakh on Ahmedabad's Shri Mahila Sewa Sahakari Bank Ltd., 2 lakh on Porbandar Vibhagiya Nagarik Sahkari Bank Ltd., 1 lakh on Himmatnagar's Sarvodaya Nagarik Sahakari Bank Ltd., 50,000 on The Khambhat Nagarik Sahakari Bank Ltd. and 25,000 on the Vejalpur Nagarik Sahkari Bank Ltd.

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Published: 24 Nov 2023, 06:17 PM IST
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