Saloni Kumari | May 3, 2025 |
RBI Imposes Monetary Penalties on Bank of Maharashtra, Bank of Baroda, ICICI, Axis, and IDBI Bank for Lack of Regulatory Compliance
The Reserve Bank of India (RBI) has imposed monetary penalties on five Indian Banks. The penalties were imposed on Friday on ICICI Bank, Axis Bank, IDBI Bank, Bank of Maharashtra and Bank of Baroda for lapse of regulatory compliance. The penalty of Rs. 29.60 Lakhs, Rs. 98 lakh, Rs. 31.80 Lakhs and Rs. 61.40 Lakhs has been levied on Axis Bank, ICICI Bank, Bank of Maharashtra & IDBI Bank and Bank of Baroda, respectively.
Axis bank of India has been penaltised with a total of Rs. 29.60 Lakhs for deficiencies in regulatory compliance. RBI says, “The bank routed unauthorised or unrelated entries through certain internal/office accounts.”
The Reserve Bank of India (RBI) has imposed a penalty on ICICI Bank for several reasons. The Central Bank of India said that the bank was unable to communicate a cybersecurity incident to the RBI within the specified time limit. In addition to this, the bank was unable to form a strong software for some selected accounts for sending alerts. The bank did not send bills or statements to several customers and also charged them for late payment, in the case of a credit card.
The Reserve Bank said the Bank of Maharashtra was fined because it did not follow rules while opening some deposit accounts using Aadhaar-based OTP verification without meeting the customers in person.
IDBI Bank was fined for charging more interest than allowed on some Kisan Credit Card (KCC) accounts.
The Reserve Bank said Bank of Baroda was fined because it did not stop an insurance company from giving non-cash rewards to its staff who were selling insurance. The bank also failed to regularly add interest to some inactive or frozen savings accounts, as required.
The RBI clarified that these fines are for not following rules properly, and they do not affect any agreements or transactions between the banks and their customers.
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