RBI penalises Citibank, Bank of Baroda, and Indian Overseas Bank with ₹10.34 crore

• RBI imposes penalties totaling ₹10.34 crore on Citibank, Bank of Baroda, and Indian Overseas Bank for various regulatory violations
• Highest penalty of ₹5 crore has been imposed on Citibank NA for non-compliance of norms
• Bank of Baroda has been fined ₹4.34 crore while Indian Overseas Bank has been imposed with penalty of ₹1 crore

The Reserve Bank of India (RBI) has taken strict action against major banks, imposing substantial penalties totaling ₹10.34 crore for various regulatory violations. Citibank, Bank of Baroda, and Indian Overseas Bank are the entities facing penalties.

Citibank, facing the highest penalty of ₹5 crore, has been penalized for non-compliance with regulations related to the depositor education and awareness fund scheme, as well as the code of conduct on outsourcing of financial services, RBI said in a statement. 

The release stated, Bank of Baroda has been fined ₹4.34 crore for violationsviolation of certain directions related to the creation of a central repository of large common exposures, and others. 

Chennai-based Indian Overseas Bank is facing a penalty of ₹1 crore for contravention of directions concerning loans and advances.

It's important to note that the RBI clarified that these penalties are based on identified deficiencies in regulatory compliance and are not meant to question the validity of any transactions or agreements between the banks and their customers.