Primarily based on supervisory findings of non-compliance with RBI instructions and associated correspondence in that regard, a discover was issued to Citibank N.A. advising it to indicate trigger as to why penalty shouldn’t be imposed on it for its failure to adjust to the mentioned RBI instructions.
After contemplating the financial institution’s reply to the discover and oral submissions made through the private listening to, RBI discovered that the financial institution reported sure breaches in giant exposures limits with delay; and it didn’t add the rectified information pertaining to sure phase, inside seven days of receipt of the rejection reviews from Credit score Info Corporations.
The RBI additionally imposed a penalty of Rs 1.50 lakh on JM Monetary House Loans Restricted for non-compliance with sure provisions of the ‘Non-Banking Monetary Firm – Housing Finance Firm (Reserve Financial institution) Instructions, 2021’.
A penalty of Rs 6.20 lakh has additionally been imposed on Asirvad Micro Finance Restricted for non-compliance with sure provisions.
In all circumstances, the RBI mentioned the penalties are based mostly on deficiencies in regulatory compliance and isn’t supposed to pronounce upon the validity of any transaction or settlement entered into by the entities with their prospects.