Citibank, Bank of Baroda, and IOB got into trouble after the Reserve Bank of India (RBI) took action against them. This action was imposed for the rule violations. Read to know about the consequences they will face.
The Reserve Bank of India (RBI) has taken action against Citibank, Bank of Baroda, and Indian Overseas Bank for violating certain rules. On November 24, the RBI imposed a penalty of Rs 5 crore on Citibank, Rs 4.34 crore on Bank of Baroda and Rs 1 crore fine on Indian Overseas Bank. According to the RBI, Citibank didn’t follow the rules related to banking regulations and failed to do some things correctly. They didn’t put the right amount of money into the Depositor Education and Awareness Fund on time. They paid some of their staff in a way they shouldn’t have. Also, they outsourced the responsibility of dealing with Anti-Money Laundering alerts to the Group company.
Coming to the Bank of Baroda, the RBI imposed a fine of Rs 4.34 crore because they didn’t comply with certain directions given by the RBI. Bank of Baroda didn’t ensure that the data they gave RBI about large financial exposures was accurate. Even when giving loans to certain companies they didn’t follow the rules. They sanctioned a working capital demand loan to a Corporation against amounts receivable from the government by way of subsidies, Also, they didn’t pay the right interest rates on deposits from senior citizens.
Based on their financial status as of March 31, 2021, The RBI inspected Citibank and Bank of Baroda. For Indian Overseas Bank, the inspection was based on their financial status as of March 31, 2022. Hence The Reserve Bank Of India RBI is taking these actions to ensure that banks follow the rules and protect the interests of depositors and the financial system.
