RBI Imposes Rs 3-Crore Penalty On Citibank India
The Reserve Bank of India has imposed a penalty of Rs 3 crore on Citibank India for not complying with directions regarding the "fit-and-proper criteria" for directors of the bank.
The RBI in a statement, however, added that the action is based on deficiencies in regulatory compliance and isn't intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
In July 2013, the central bank had issued a "cautionary letter" to Citibank for violations of instructions regarding know-your-customer norms or anti-money laundering. The U.S.-based Citibank has been operating in India for over 115 years. The bank has 35 branches in India and a network of 541 ATMs, according to the latest RBI data.