The Reserve Bank of India (RBI) has imposed monetary penalties on IDBI Bank Limited and Citibank N.A. for violations under the Foreign Exchange Management Act (FEMA), 1999.
IDBI Bank has been fined ₹36.30 lakh for failing to conduct due diligence while processing inward remittances from a Foreign Currency Account opened by a constituent.
Similarly, Citibank N.A. has been penalized ₹36.28 lakh for failing to comply with RBI’s reporting guidelines for transactions under the Liberalized Remittance Scheme.
Following a review of their written replies and oral submissions, the central bank concluded that the violations were substantiated and warranted action.
RBI clarified that the penalties are related to regulatory compliance deficiencies and do not affect the validity of transactions or agreements between the banks and their customers.
For further updates, stay tuned.
