RBI Imposes Penalties on Citibank and IDBI Bank

In a recent regulatory crackdown, the Reserve Bank of India (RBI) has imposed a fine of Rs 36.3 lakh on Citibank for failing to adhere to the guidelines related to the reporting of transactions under the Liberalised Remittance Scheme. Similarly, IDBI Bank has been penalized with the same amount for not conducting proper due diligence while processing inward remittances from a foreign currency account opened by a constituent.

This move by the RBI underscores the importance of compliance with regulatory directives and the consequences of failing to do so. Both banks are expected to take immediate corrective actions to address the lapses identified by the RBI.