National

RBI imposes Rs 10 crore penalty on 3 banks, know reason 

New Delhi: The Reserve Bank of India (RBI) has imposed a penalty of more than Rs 10 crore on three banks for violating the rules. At the same time, RBI has also taken action on 5 cooperative banks. The central bank has imposed the highest penalty of Rs 5 crore on Citibank, Rs 4.34 crore on Bank of Baroda and Rs 1 crore on Indian Overseas Bank.  
      Private sector Citibank has been fined the most. This bank is accused of violating the Banking Regulation Act. Also, not following RBI guidelines for risk management and outsourcing of financial services. 
      Bank of Baroda is accused of violating rules related to the creation of a central repository of large common exposure. On the other hand, Chennai-based public sector Indian Overseas Bank has been found guilty of not following the rules of loan and advance.