RBI slaps penalties totalling Rs 10.34 cr on Citibank, Bank of Baroda, IOB

25/11/2023

Mumbai, nov 24: The Reserve Bank on Friday imposed penalties totalling Rs 10.34 crore on Citibank, Bank of Baroda, and Indian Overseas Bank for contravention of various regulatory norms.
The highest penalty of Rs 5 crore has been imposed on Citibank NA for non-compliance of norms related to depositor education and awareness fund scheme, and code of conduct on outsourcing of financial services, the RBI said in a statement. A fine of Rs 4.34 core was imposed on the state-owned Bank of Baroda for violation of certain directions related to the creation of a central repository of large common exposures, and others, another release said. Chennai-based public sector lender Indian Overseas Bank was slapped with a Rs 1 crore fine for contravention of directions concerning loans and advances. In all three cases, the Reserve Bank of India said, penalties are based on deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers. 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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