RBI Fines Citibank Rs 3.2 Lakh for FEMA Violation

Mumbai, Apr 9 (PTI) The Reserve Bank on Wednesday said it has imposed a penalty of Rs 3.20 lakh on Citibank N A for not undertaking due diligence while processing the inward remittances from a foreign currency account opened by a constituent, resulting in contravention of a provision of FEMA.

In a statement, the Reserve Bank of India said it had issued a show cause notice to Citibank, in response to which the bank submitted a written reply and also made oral submissions thereon.


"After considering the facts of the case and the bank's reply in the matter, the Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of penalty," the central bank said.

It also added that the action is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.