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Informist, Friday, Mar. 21, 2025

--RBI imposes INR 3.63-mln penalty on IDBI Bank for FEMA violations 

--RBI imposes INR 3.63-mln penalty on Citibank 

NEW DELHI – The Reserve Bank of India has penalised IDBI Bank and Citibank for violating norms under the Foreign Exchange Management Act, 1999, imposing a fine of INR 3.63 million on each of the banks.

The RBI fined IDBI Bank for not undertaking due diligence while processing the inward remittances from a Foreign Currency Account opened by a constituent, resulting in contravention the Foreign Exchange Management Act, the central bank said in a release. Citibank was penalised for contravention of the directions issued by the RBI related to reporting of transactions undertaken under the Liberalized Remittance Scheme.

The central bank had issued show cause notices to both banks and the penalties were imposed after hearing replies of each of the banks in their respective cases. "After considering the facts of the case and the bank's reply in the matter, the RBI came to the conclusion that the violations were substantiated and warranted imposition of penalty," the central bank said.

On Friday, shares of IDBI Bank ended 8.1% higher at INR 81.37 on the National Stock Exchange.  End

Reported by Shubham Rana

Edited by Akul Nishant Akhoury

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