RBI Slaps Rs3.20 Lakh Penalty on Citibank for FEMA Violation
Moneylife Digital Team 10 April 2025
The Reserve Bank of India (RBI) has imposed a penalty of Rs3.20 lakh on Citibank NA for failing to exercise due diligence while processing inward remittances from a foreign currency account held by a client. This lapse led to a violation of the provisions under the Foreign Exchange Management Act (FEMA).
 
RBI had earlier issued Citibank a show-cause notice (SCN) regarding the contravention. In response, the lender submitted a written explanation and also presented oral arguments.
 
"After examining the case details along with the bank's submissions, the Reserve Bank concluded that the charges were substantiated and warranted the imposition of a penalty," the central bank stated.
 
RBI further clarified that this regulatory action is based on deficiencies in compliance and is not intended to question the validity of any transactions or agreements the Bank may have entered into with its customers.
Comments
6 NBFCs Registration Cancelled, 11 Others Surrender Certificates to RBI
Moneylife Digital Team 10 April 2025
As many as 11 non-banking finance companies (NBFCs) have surrendered their registration certificates to the Reserve Bank of India (RBI), while the regulator cancelled the registration of six NBFCs for reasons such as exiting the...
RBI Cuts Repo Rate By 25bps to 6%
Moneylife Digital Team 09 April 2025
As expected, the Reserve Bank of India (RBI), in its second monetary policy committee (MPC) meeting for 2025, decided to cut the repo rate, the central bank's rate for short-term loans to banks, by 25bps (basis points) to 6.0% from...
Conflict of Interest: Ex-CVC Pratyush Sinha To Head SEBI's High-level Committee To Review 2008 Provisions
Moneylife Digital Team 09 April 2025
Pratyush Sinha, an officer from the Indian Administrative Services (IAS) and former chief vigilance commissioner (CVC), will head the six-member high-level committee (HLC) of Securities and Exchange Board of India (SEBI). The...
SEBI Launches New Handle on X, Asks Regulated Entities To Use 1600 Series for Calling Customers
Moneylife Digital Team 09 April 2025
After locking its old handle on X (erstwhile Twitter), the Securities and Exchange Board of India (SEBI) has launched a new handle @SEBI_Updates. The market regulator also advised all regulated and registered entities to strictly use...
Array
Free Helpline
Legal Credit
Feedback