RBI Fines Citibank and Others for Compliance Failures

The Reserve Bank of India has levied penalties totaling Rs 39 lakh on Citibank N.A. and imposed fines on JM Financial Home Loans and Asirvad Micro Finance for failing to comply with regulatory directions. These penalties arise from delays in reporting and non-compliance with various financial instructions.

The Reserve Bank of India announced on Friday a penalty of Rs 39 lakh against Citibank N.A. due to violations of the large exposures framework and delayed credit information updates to Credit Information Companies (CICs).

According to RBI’s statement, an inspection for Supervisory Evaluation analyzed the bank’s financial status as of March 31, 2023, revealing compliance issues. Citibank received a notice seeking an explanation for breaches in regulation, followed by penalties.

Additionally, JM Financial Home Loans Limited and Asirvad Micro Finance Limited faced penalties of Rs 1.50 lakh and Rs 6.20 lakh respectively, for not adhering to specific directives. RBI clarified that these penalties highlight regulatory compliance failures and do not dispute the legitimacy of client transactions.