RBI imposes penalty on Citibank, IDBI Bank

Mar 21, 2025

Synopsis
The Reserve Bank of India has penalized Citibank N.A. with Rs 36.28 lakh and IDBI Bank Ltd. with Rs 36.30 lakh for violations related to transaction reporting and inadequate due diligence on remittances respectively. These penalties highlight deficiencies in regulatory compliance and are not meant to impact the validity of customer transactions or agreements.

The Reserve Bank of India (RBI) on Friday said it has imposed a penalty of Rs 36.28 lakh on Citibank N.A. for contravention of the directions related to reporting of transactions undertaken under the Liberalised Remittance Scheme. In another release, it said penalty of Rs 36.30 lakh has been imposed on IDBI Bank Ltd for not undertaking due-diligence while processing the inward remittances from a foreign currency account opened by a constituent.

In both cases, the RBI said the penalties are based on the deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.

[The Economic Times]