RBI Fines Citibank Rs. 3.2 Lakh for FEMA Violation

The Reserve Bank of India (RBI) has levied a fine of Rs. 3,20,000 on Citibank N.A. for violating Section 10(4) of the Foreign Exchange Management Act (FEMA), 1999. The issue arose because Citibank didn’t carry out due diligence while handling inward remittances from a foreign currency account of one of its customers.

RBI had earlier sent a show cause notice to Citibank, and after reviewing the bank’s written and oral replies on this matter, RBI decided that the violations were valid and a penalty needed to be imposed.

Refer to the official notification for more information.