Excerpt from HindustanTimes Article, Published on Nov 24, 2023 

The Reserve Bank of India (RBI) wielded its punitive measures, levying penalties totaling ₹10.34 crore on major banks—Citibank, Bank of Baroda, and Indian Overseas Bank—for non-compliance with regulatory mandates.

Citibank faced the heftiest penalty, amounting to ₹5 crore, attributable to lapses in adhering to norms governing the depositor education and awareness fund scheme. Additionally, their failure to uphold the code of conduct on outsourcing financial services incurred the RBI’s reprimand.

Bank of Baroda, a prominent state-owned bank, incurred a penalty of ₹4.34 crore for violating directives concerning the establishment of a central repository for large common exposures, among other transgressions highlighted in an RBI statement.

The Chennai-based Indian Overseas Bank found itself fined ₹1 crore due to contraventions pertaining to directions regarding loans and advances.

The RBI clarified that these penalties do not cast aspersions on the legitimacy of any transactions or agreements between these banks and their customers. Instead, they underscore deficiencies in regulatory compliance, prompting these punitive actions.

These fines highlight the RBI’s regulatory vigilance in ensuring that financial institutions adhere to set standards, underscoring the significance of strong compliance frameworks within the banking industry.

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