RBI imposed a monetary penalty of Rs3,20,000 on Citibank N.A. for not undertaking due diligence while processing the inward remittances from a Foreign Currency Account opened by a constituent
FinTech BizNews Service
Mumbai, April 9, 2025: The Reserve Bank of India has imposed a monetary penalty of ₹3,20,000/- (Rupees Three Lakhs Twenty Thousand only) on Citibank N.A. in exercise of powers vested in the Reserve Bank under the provisions of Section 11(3) of FEMA, 1999, for not undertaking due diligence while processing the inward remittances from a Foreign Currency Account opened by a constituent, resulting in contravention of Section 10 (4) of FEMA, 1999.
The Reserve Bank of India had issued a Show Cause Notice to the bank, 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.
This action is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
