In all cases, the RBI said the fines are based on flaws in regulatory compliance and are not planned to pronounce upon the validity of any transaction or deal entered into by the banks with their clients.
ICICI, BoB, Axis Among Banks Penalized
The Reserve Bank of India (RBI) announced on Friday that it has imposed monetary penalties on five prominent banks—including ICICI Bank, Bank of Baroda (BoB), Axis Bank, IDBI Bank, and Bank of Maharashtra—for failing to comply with various regulatory guidelines. The fines were issued following scrutiny of the banks’ adherence to RBI directives in areas such as cybersecurity, customer verification, agricultural lending, and internal account operations.
ICICI Bank Fined Nearly Rs 1 Crore
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ICICI Bank received the largest penalty among the five, amounting to ₹97.80 lakh. The RBI cited the bank’s non-compliance with multiple directives, including those related to the Cyber Security Framework in Banks, Know Your Customer (KYC) guidelines, and standards concerning the issuance and management of credit and debit cards. These lapses reflect shortcomings in the bank’s internal systems and oversight mechanisms.
Bank of Baroda Faces Rs 61.40 Lakh Penalty
Bank of Baroda was fined ₹61.40 lakh for failing to comply with directions related to financial services offered by banks and customer service standards. The RBI did not specify individual incidents but emphasized deficiencies in adhering to prescribed service norms.
Penalties on IDBI, Bank of Maharashtra, and Axis Bank
- IDBI Bank Ltd has been penalized ₹31.80 lakh for non-compliance with the RBI’s directions on the interest subvention scheme for short-term agricultural loans through the Kisan Credit Card (KCC) platform.
- Bank of Maharashtra faced an identical fine of ₹31.80 lakh for KYC-related non-compliance.
- Axis Bank was penalized ₹29.60 lakh for lapses concerning the unauthorized operation of internal or office accounts, a serious issue tied to internal financial control.
Regulatory Action Not a Judgment on Customer Agreements
In all cases, the RBI clarified that the penalties are administrative in nature and are strictly based on regulatory compliance failures. The action does not affect or invalidate any transactions or contracts that the banks may have entered into with their customers.
The penalties are a reminder of the RBI’s continued vigilance and zero-tolerance approach towards lapses in compliance by financial institutions.
