RBI Penalizes Multiple Banks for Regulatory Non-Compliance
The Reserve Bank of India (RBI) has taken strict action against multiple banks and financial institutions for failing to comply with regulatory guidelines. Citi Bank, JM Financial Home Loans Limited, and Ashirvad Micro Finance have been fined for various violations.
Citi Bank Fined ₹39 Lakh for Non-Compliance
The RBI imposed a penalty of ₹39 lakh on Citi Bank for violating regulations related to large loans and failing to update credit information on time. The RBI conducted a statutory inspection based on the bank's financial position as of March 31, 2023.
After reviewing the bank’s response and personal hearing, RBI found that Citi Bank delayed reporting violations and failed to update revised credit data within the stipulated seven-day period.
₹1.50 Lakh Penalty on JM Financial Home Loans Limited
JM Financial Home Loans Limited has been fined ₹1.50 lakh for not complying with RBI’s ‘Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021’.
Ashirvad Micro Finance Penalized ₹6.20 Lakh
Ashirvad Micro Finance was also penalized by RBI with a fine of ₹6.20 lakh for two key violations:
- Failure to provide fact sheets to certain gold loan customers.
- Lack of an automatic escalation system for unresolved customer complaints to the internal ombudsman.
These regulatory actions highlight RBI’s strict stance on compliance and the need for banks and financial institutions to follow guidelines diligently to avoid penalties.
