Recorded RBI impact
Fine: Rs 3.00 Cr
Monetary penalty · Fresh imposition
Published by RBI
11 Jan 2019
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹30 million on Citibank NA India by order dated January 4, 2019. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949 for deficiencies in compliance with RBI instructions on the ‘Fit and Proper’ criteria for directors of banks. RBI noted that the action was based on regulatory compliance deficiencies and was not intended to pronounce upon the validity of any transaction or agreement entered into with customers.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949 because Citibank NA India failed to adhere to RBI instructions on the ‘Fit and Proper’ criteria for directors of banks. RBI stated the action was based on regulatory compliance deficiencies.
Operating Impact
Citibank NA India must absorb the penalty and strengthen its compliance around director fit-and-proper requirements and related regulatory processes. The action has no stated customer-facing restriction, but it signals heightened supervisory scrutiny over governance compliance.
Regulatory Basis
- Section 47A(1)(c)
- Section 46(4)(i) of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 3.00 Cr
- Order Date
- 4 Jan 2019
- Effective From
- 4 Jan 2019
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Bank