Two banks, IDBI and Citibank, will pay the penalty for violating RBI norms. RBI said that they imposed the penalty as the banks failed to follow certain rules and regulations.
As per reports, RBI imposes a penalty of Rs 36.3 lakh on IDBI Bank as it failed to handle due diligence while processing inward remittances from a foreign currency account. In simple words IDBI had not done the proper checks (due diligence) while processing money (inward remittances) sent from foreign accounts.
And RBI imposes penalty of rs36.2 lakh on Citibank as it breached transactions under the Liberalised Remittance Scheme (LRS).
The penalty has been levied under Section 11(3) of FEMA, 1999, as the bank’s actions violated Section 10(4) of FEMA, 1999.
