RBI Imposes Penalty of Rs 1.29 Crore on Three Major Indian Banks:

RBI Imposes Penalty of Rs 1.29 Crore on Three Major Indian Banks

On April 4, 2025, the Reserve Bank of India (RBI) issued an official order regarding the imposed monetary penalty on three major Indian banks. The monetary penalties of Rs. 29.60 lakh, Rs. 38.60 lakh, and Rs. 61.40 lakh have been imposed on Punjab National Bank, IDFC First Bank Limited, and Kotak Mahindra Bank Limited, respectively. At Punjab National Bank (PNB), the penalty has been imposed due to the non-compliance with certain directions issued by RBI on ‘Customer Service in Banks.’ This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949. At IDFC First Bank Limited, the penalty has been imposed due to the non-compliance with certain directions issued by RBI on ‘Know Your Customer (KYC).’ This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949. In a similar manner, at Kotak Mahindra Bank Limited, the penalty has been imposed due to the non-compliance with certain directions issued by RBI on ‘Guidelines on Loan System for Delivery of Bank Credit’ and ‘Loans and Advances – Statutory and Other Restrictions.’ This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949. After reviewing the bank’s written reply, extra documents, and statements made during the personal hearing, the RBI found that the charges against the bank were valid and decided to impose the fine. This penalty is due to failures in regulatory rules. It does not question the legality of any transactions or agreements the bank has made with its customers. Also, this fine does not stop the RBI from taking other actions against the bank if needed. For more related information, read the official order released by RBI.