Citibank, Bank of Baroda and Indian Overseas Bank fined by the RBI for non-compliance

The Reserve Bank of India (RBI), the banking regulator, has fined Citibank, Bank of Baroda, and Indian Overseas Bank a total of Rs 10.34 crore on November 24 for not following certain rules. The penalties were for issues in regulatory compliance, and it’s important to note that the fines don’t question the validity of specific transactions or agreements between the banks and their customers.

Indian Overseas Bank was fined ₹1 crore for not following directions related to ‘loans and advances—statutory and other restrictions.’ Citibank faced a ₹5 crore penalty for non-compliance with guidelines on ‘operational procedures, risk management, and the conduct of outsourcing financial services,’ as well as the ‘depositor education and awareness fund scheme, 2014.’ The Bank of Baroda received a ₹4.34 crore penalty for not complying with rules on ‘loans and advances—statutory and other restrictions’ and ‘Reserve Bank of India (interest rate on deposits) directions, 2016.’

Earlier on November 23, the RBI also fined five cooperative banks for not meeting regulatory compliance standards. These banks include Shri Mahila Sewa Sahakari Bank Ltd., Porbandar Vibhagiya Nagarik Sahkari Bank Ltd., Sarvodaya Nagarik Sahakari Bank Ltd.,  Khambhat Nagarik Sahakari Bank Ltd., and Vejalpur Nagarik Sahkari Bank Ltd. The fines ranged from ₹25,000 to ₹2.50 lakh.