RBI imposes monetary penalty of Rs 39 lakh on Citibank

The Reserve Bank of India, RBI has imposed a monetary penalty of thirty nine lakh rupees on Citibank for non-compliance with certain directions related to Large Exposures Framework and Furnishing of Credit Information to Credit Information Companies.

The apex bank yesterday also imposed a monetary penalty of Six Lakh Twenty Thousand Rupees on Asirvad Micro Finance Limited as it failed to report the household income of certain borrowers to Credit Information Companies. It also failed to provide factsheets to certain gold loan customers besides failing to establish a system of auto-escalation of all complaints that were partly or



wholly rejected by its internal grievance redressal mechanism to the Internal Ombudsman for a final decision.

A monetary penalty of One lakh fifty thousand rupees has also been imposed on JM Financial Home Loans Limited as it failed to disclose the approach for gradation of risk and rationale for charging different rates of interest to different categories of borrowers. RBI has clarified that the action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers.