RBI Slaps Penalties on ICICI Bank, BoB, IDBI Bank, Bank of Maharashtra for Regulatory Lapses

GG News Bureau
Mumbai, 3rd May: The Reserve Bank of India (RBI) took strict action against several private and public sector banks on Friday, imposing monetary penalties for deficiencies in regulatory compliance. The central bank stated that the penalties were levied for non-adherence to specific directions issued by the RBI.

According to a PTI report, ICICI Bank faced a penalty of ₹97.80 lakh for failing to comply with certain instructions issued by the RBI on ‘Cyber Security Framework in Banks’, ‘Know Your Customer (KYC)’, and ‘Credit Card and Debit Card – Issuance and Conduct’. The RBI noted that the penalty was imposed due to non-compliance with these specific regulatory guidelines.

In a separate statement, the RBI announced a penalty of ₹61.40 lakh on Bank of Baroda for non-compliance with certain directions related to ‘Financial Services Provided by the Banks’ and ‘Customer Service in Banks’. The central bank found discrepancies in the bank’s adherence to these guidelines.

IDBI Bank Limited was also penalized by the RBI, facing a fine of ₹31.8 lakh for failing to comply with specific instructions under the ‘Interest Subvention Scheme for Short Term Loans for Agriculture and Allied Activities availed through Kisan Credit Card (KCC)’. The RBI identified shortcomings in the bank’s implementation of this scheme.

Furthermore, Bank of Maharashtra was subjected to a penalty of ₹31.80 lakh for non-compliance with certain directions pertaining to KYC guidelines. The RBI found instances where the bank did not adhere to the stipulated KYC norms.

The RBI clarified in its statements that the penalties imposed on all the aforementioned banks were based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers. The central bank’s action underscores its commitment to ensuring that banks strictly adhere to regulatory guidelines to maintain the stability and integrity of the financial system and protect customer interests.