The Reserve Bank of India has imposed a fine on another large bank in the country. In fact, the Reserve Bank has imposed a penalty on Citibank for not following the NOC rule in opening a current account on Friday.
Citi Bank has been fined Rs 4 crore as penalty. According to the statement of the Reserve Bank, Citibank has been fined for negligence in the rules while taking information from customers. Citibank has accused the customer of negligence in taking credit facility from another bank while opening the current account. Also, the rules of NOC and Risk Assistance Finding were not followed. Earlier, Citibank was also issued a notice notifying the non-compliance of the rules.
Let me tell you that this is not the first case in the country that has been fined. The Reserve Bank also imposed a penalty of Rs 60 lakh on the India Co-operative Bank. Also, a fine of 45 lakhs was imposed on Tjasap Cooperative Bank. The same Urban Urban Co-operative Bank has also been fined Rs 40 lakh.
Apart from this, if you talk to market manuals, then the service has imposed a penalty of 14 lakhs on Dewan Housing Financing Limited (DHFL) and 14 persons. State Bank of India (SBI) statement said that while issuing NCDs on behalf of DHFL did not comply with the market conditions due to which the Sevi had imposed a fine of Rs 20 lakh. On account of fraudulent trading in the shares of Gallant Ispat Ltd., Sevi has paid a fine of 28 lakhs, all these people were fraudulently traded in share trading between April 2014 to December 2014.
The Reserve Bank constantly keeps a close watch on all banks to ensure that customers’ money remains intact in the country.