The RBI said that the fines were imposed to "deter recurrence of such non-compliance in future and to uphold the standards of conduct expected from banks."
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RBI penalty |
Which bank imposed penalty on RBI
The Reserve Bank of
India
(RBI) has fined Citibank ₹5 crore, Bank of Baroda ₹4.34 crore, and Indian
Overseas Bank ₹1 crore for breach of code of conduct. The fines were imposed
on November 24, 2023.
Citibank was fined for non-compliance with norms related to the depositor
education and
awareness fund scheme, and code of conduct on outsourcing of financial services. Bank
of Baroda was fined for violation of certain directions related to the
creation of a central repository of large common exposures. Indian Overseas
Bank was fined for contravention of directions concerning loans and
advances.
The fines come at a time when the RBI is taking a stricter stance on
regulatory compliance. In recent months, the RBI has imposed penalties on a
number of banks for various violations.
These fines are a reminder that banks must adhere to all applicable
regulations and codes of conduct. Failure to do so can result in significant
penalties.