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. Reserve Bank has also taken action against Ashirvad Micro Finance.
The Reserve Bank has taken major action on another bank. The Reserve Bank said on Friday that it has imposed a fine of Rs 39 lakh on Citi Bank for non-compliance of 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 assessment of the bank was done with reference to its financial position as of March 31, 2023.
Notice was issued
Based on the supervisory findings of non-compliance of the instructions of the Reserve Bank and the related correspondence in that regard, a notice was issued to Citi Bank N.A. In the notice, it was advised to show cause why it should not be fined for failing to comply with the said instructions of the Reserve Bank. After considering the bank’s reply to the notice and the oral submissions made during the personal hearing, the Reserve Bank found that the bank reported the case of violation of the directions related to large loans late and it did not upload revised figures relating to certain segments within seven days of receiving the rejection report from the credit information companies.
Action also taken 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 taken 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 which 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.
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