RBI has imposed a fine of Rs 39 lakh on Citi Bank. JM Financial Home Loans Limited has also been fined Rs 1.50 lakh. The Reserve Bank has also taken action against Ashirvad Micro Finance.
RBI Action: The Reserve Bank has taken major action against another bank. The Reserve Bank said on Friday that it has imposed a fine of Rs 39 lakh on Citi Bank for not following the instructions related to large loans and delay in providing related information to credit information companies. The Reserve Bank said that the statutory inspection for supervisory evaluation of the bank was done with reference to its financial position till March 31, 2023.
Notice was issued
Based on the supervisory findings of non-compliance with RBI directions and the related correspondence in that regard, a notice was issued to Citibank N.A. advising it to show cause as to why it should not be penalised for failure to comply with the said RBI directions. After considering the bank’s reply to the notice and oral submissions made during the personal hearing, RBI observed that the bank had reported the violations of directions relating to large loans late and it did not upload revised data relating to certain segments within seven days of receiving the rejection report from the credit information companies.
Action also on JM Financial
The Reserve Bank also imposed a fine of Rs 1.50 lakh on JM Financial Home Loans Limited for non-compliance of certain provisions of the ‘Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021’.
Fine also on Ashirvad Micro Finance
The Reserve Bank has also taken action against Ashirvad Micro Finance. This bank also failed to provide fact sheets to some gold loan customers and did not set up a system of auto-escalation for all complaints that were partially or fully rejected by its internal grievance redressal mechanism to the internal ombudsman for final decision. Due to these deficiencies, the Reserve Bank imposed a fine of Rs 6.20 lakh on the company.
