The Reserve Bank said on Friday it had imposed a penalty of Rs 390,000 on Citibank NA for following instructions related to delays in credit furniture to the large-scale exposure framework and CIC.
In a statement, the RBI said that on March 31, 2023, a statutory inspection for the bank’s supervision assessment was conducted in relation to its financial position.
A notice has been issued to Citibank NA based on the results of a supervisory investigation of non-compliance with RBI instructions and related communications. .
After considering bank responses and oral submissions to notifications made during individual hearings, the RBI found that the bank had reported certain violations of the delay and massive exposure restrictions. Furthermore, within seven days of receiving the denial report from a credit company, we did not upload any amendment data related to a particular segment.
The RBI also imposed a penalty of Rs 1.50 lakh on JM Financial Home Loans Limited for violating certain provisions of the “Non-Bank Finance Company – Housing Finance Company (Reserve Bank) Instructions”.
A penalty of Rs 6.2 lakh is also levied on Asirvad Micro Finance Limited for violating certain provisions.
In all cases, the RBI stated that the penalty was based on a defect in regulatory compliance and was not intended to pronounce the validity of transactions or contracts entered into by the entity with the customer.
