BI to decide on Citibank punishment this week

A central bank official said the BI governor board planned to discuss what punishments should be imposed on Citibank following the death of one of its credit card customers and the alleged embezzlement of Rp 17 billion by a senior staff member.

“We are going to have a meeting about [sanctions] this week, so we shall wait and see,” Rochadi said Monday, as quoted by kompas.com.

He added that BI also planned to seek a second opinion from the Indonesia Customer Protection Foundation (YLKI) regarding steps to minimize the use of unnecessary force by banks in collecting credit card debts.

Previously BI had said Citibank had clearly violated the central bank internal ruling regarding third-party involvement in debt collection. BI had also found Citibank guilty for its loose monitoring of the premium customer services that paved the way for one of its senior staff members to commit fraud.

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