Citi fraud: STR, KYC violations under RBI lens

The Reserve Bank of India is probing if there were violations in customer verification and monitoring of accounts, in the alleged Rs 400-cr Citibank Gurgaon fraud.

The Reserve Bank of India is probing if there were violations in customer verification and monitoring of accounts, in the alleged Rs 400-cr Citibank Gurgaon fraud.

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The question is whether Citibank followed the STR (Suspicious Transaction Reporting) norms, which requires a bank to alert regulatory and enforcement agencies about high-value and unusual transactions in any account.

Also under probe is whether Citibank followed the know-your-customer (KYC) norms when the accounts involved in the fraud case were opened.