IDBI Bank, Citibank Fined Rs72.58 Lakh over LRS and FEMA Violations
Moneylife Digital Team 24 March 2025
Reserve Bank of India (RBI) has imposed penalties of Rs72.58 lakh on Citibank NA  and IDBI Bank Ltd for non-compliance with the directions issued by the banking regulator. Citibank has been slapped with a fine of Rs36.28 lakh, while IDBI Bank has been penalised Rs36.30 lakh.  
 
Citibank has been penalised for contravention of the directions related to reporting transactions undertaken under the liberalised remittance scheme (LRS).
 
IDBI Bank has been penalised for not undertaking due diligence while processing the inward remittances from a foreign currency account opened by a constituent, resulting in contravention of Section 10 (4) of the Foreign Exchange Management Act (FEMA), 1999, the central bank says.
 
In both cases, RBI said penalties are based on deficiencies in regulatory compliance and are not intended to pronounce on the validity of any transaction or agreement they entered into with their customers.
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