RBI Cracks Down on Major Banks with Hefty Penalties

The Reserve Bank of India has imposed financial penalties on ICICI Bank, Bank of Baroda, Axis Bank, and others for regulatory non-compliance. These penalties highlight issues in cyber security, KYC, and financial services, amounting to significant sums. The fines address compliance deficiencies, not transaction validity.

The Reserve Bank of India (RBI) has taken stringent action against several prominent banks, including ICICI Bank, Bank of Baroda, and Axis Bank, for lapses in regulatory compliance.

A fine of Rs 97.80 lakh was levied on ICICI Bank for failing to adhere to RBI directives on cyber security, KYC, and card operations. Simultaneously, Bank of Baroda faces a penalty of Rs 61.40 lakh for shortcomings in customer service and financial services offered by banks.

IDBI Bank Ltd has been fined Rs 31.80 lakh for non-compliance with agricultural loan schemes, while Bank of Maharashtra and Axis Bank incurred penalties of Rs 31.80 lakh and Rs 29.60 lakh, respectively, for failing to meet KYC and account operation standards. These penalties underscore regulatory compliance deficiencies without addressing the accuracy of bank transactions.

(With inputs from agencies.)