In a significant move, the Reserve Bank of India (RBI) has imposed penalties on ICICI Bank, Axis Bank, Bank of Maharashtra, Bank of Baroda, and IDBI Bank for non-compliance with various regulatory guidelines. The total penalties amount to ₹2.52 crore, with ICICI Bank receiving the highest fine.
Penalties in Detail
- ICICI Bank: ₹97.8 lakh
- Axis Bank: ₹29.6 lakh
- Bank of Maharashtra: ₹31.8 lakh
- Bank of Baroda: ₹61.4 lakh
- IDBI Bank: ₹31.8 lakh
Why ICICI Bank Was Fined
ICICI Bank faced multiple violations, including:
- Failure to report a cyber security incident within the stipulated timeline.
- Lack of a robust alert system for suspicious accounts.
- Charging late payment fees without sending credit card statements to some customers.
These lapses reflect serious concerns regarding digital compliance and customer rights.
Axis Bank: Unauthorised Internal Operations
Axis Bank was fined for allowing unauthorised operations in internal or office accounts, violating standard operational protocols. This raises red flags on internal control mechanisms.
KYC & Compliance Failures
- Bank of Maharashtra was penalised for KYC-related violations, which are essential for preventing money laundering and ensuring customer identity verification.
- Bank of Baroda failed to follow directions related to financial services, customer service, and interest rate disclosures on deposits.
IDBI Bank: Issues with Agri Loans
IDBI Bank’s penalty relates to non-compliance with the interest subvention scheme for Kisan Credit Card (KCC) loans. This scheme is crucial for offering subsidised short-term agricultural credit, and mismanagement affects thousands of farmers.
Final Word
These penalties reinforce RBI’s commitment to financial discipline, customer protection, and compliance enforcement across the banking sector. Lenders are expected to tighten their internal controls and ensure full adherence to regulatory norms going forward.
