RBI Penalizes Major Banks for Compliance Failures

The Reserve Bank of India has imposed financial penalties on four banks, including ICICI Bank and Bank of Baroda, for failing to comply with regulatory standards. These penalties, totaling over Rs 222 lakh, highlight deficiencies in areas such as cyber security, customer service, and agricultural loan schemes.

The Reserve Bank of India (RBI) took regulatory action on Friday by imposing financial penalties on four major banks, including ICICI Bank and Bank of Baroda, citing deficiencies in regulatory compliance.

ICICI Bank faced a penalty of Rs 97.80 lakh due to non-compliance with RBI's directives concerning the 'Cyber Security Framework in Banks,' 'Know Your Customer (KYC)' standards, and the issuance and conduct of credit and debit cards.

Bank of Baroda incurred a penalty of Rs 61.40 lakh for failures in adhering to regulations related to 'Financial Services provided by Banks' and 'Customer Service in Banks.' Additionally, IDBI Bank and Bank of Maharashtra were fined Rs 31.8 lakh each for their own compliance shortcomings related to agricultural loan schemes and KYC norms, respectively. The RBI emphasized that these penalties address compliance deficiencies and do not question the validity of any transactions between these banks and their customers.

(With inputs from agencies.)