<p>The Reserve Bank of India, on Friday, imposed a penalty of Rs 4 crore on Citibank for violation of remuneration norms and non-compliance regarding obtaining the declarations from customers.</p>.<p>The RBI has imposed, by an order dated January 08, 2020, a monetary penalty of Rs 4 crore on Citibank for contravention of Section 10 (1) (b) (ii) of Banking Regulation Act, 1949 and for non-compliance with the directions issued by RBI on obtaining declaration from customers about credit facilities enjoyed with other banks, granting non-fund based facilities to non-constituent borrowers, the central bank said in a statement.</p>.<p>The relevant section says that no banking company shall employ or continue the employment of any person whose remuneration or part of whose remuneration takes the form of commission or of a share in the profits of the company.</p>.<p> The statutory inspection of the Indian operations of the Citibank with reference to its financial positions as on March 31, 2017, and March 31, 2018, and the Risk Assessment Reports (RARs) thereto revealed a contravention with the provisions of the Act and non-compliance with the above-mentioned directions issued by RBI, it said.</p>.<p>After the inspection, when RBI issued notice to the Citibank, it wasn't satisfied with latter's reply, the apex bank.</p>.<p>The penalty will however not affect the bank's customers, the RBI clarified. "This action is based on 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," it stated.</p>.<p>The central bank, had earlier, on Thursday had said it has fined Bank of India (Rs 5 crore), Karnataka Bank (Rs 1.2 cr), and Saraswat Co-operative Bank (Rs 30 lakh) for non-compliance of various rules.</p>
<p>The Reserve Bank of India, on Friday, imposed a penalty of Rs 4 crore on Citibank for violation of remuneration norms and non-compliance regarding obtaining the declarations from customers.</p>.<p>The RBI has imposed, by an order dated January 08, 2020, a monetary penalty of Rs 4 crore on Citibank for contravention of Section 10 (1) (b) (ii) of Banking Regulation Act, 1949 and for non-compliance with the directions issued by RBI on obtaining declaration from customers about credit facilities enjoyed with other banks, granting non-fund based facilities to non-constituent borrowers, the central bank said in a statement.</p>.<p>The relevant section says that no banking company shall employ or continue the employment of any person whose remuneration or part of whose remuneration takes the form of commission or of a share in the profits of the company.</p>.<p> The statutory inspection of the Indian operations of the Citibank with reference to its financial positions as on March 31, 2017, and March 31, 2018, and the Risk Assessment Reports (RARs) thereto revealed a contravention with the provisions of the Act and non-compliance with the above-mentioned directions issued by RBI, it said.</p>.<p>After the inspection, when RBI issued notice to the Citibank, it wasn't satisfied with latter's reply, the apex bank.</p>.<p>The penalty will however not affect the bank's customers, the RBI clarified. "This action is based on 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," it stated.</p>.<p>The central bank, had earlier, on Thursday had said it has fined Bank of India (Rs 5 crore), Karnataka Bank (Rs 1.2 cr), and Saraswat Co-operative Bank (Rs 30 lakh) for non-compliance of various rules.</p>
