Reserve Bank of India (RBI) has imposed monetary penalties on five major banks for various regulatory violations under the Banking Regulation Act and RBI guidelines. The action highlights RBI’s strict stance on governance, compliance, and customer protection.
Detailed Violations
ICICI Bank (₹97.8 lakh penalty)
- Failed to report cyber security incident to RBI within the stipulated timeline
- Lacked robust software to generate alerts for certain account categories
- Failed to send credit card bills/statements to some customers but still levied late payment charges
Axis Bank (₹29.6 lakh penalty)
- Non-compliance on unauthorized operations of internal/office accounts
Bank of Maharashtra (₹31.8 lakh penalty)
- KYC lapses, especially Aadhaar OTP-based e-KYC accounts opened in non-face-to-face mode
Bank of Baroda (₹61.4 lakh penalty)
- Paid non-cash incentives to staff from insurance companies (against guidelines)
- Failed to credit interest on inoperative/dormant/frozen savings accounts at required intervals
IDBI Bank (₹31.8 lakh penalty)
- Non-compliance under the Interest Subvention Scheme for short-term agriculture loans through Kisan Credit Card (KCC)
Legal Framework and Context
- RBI acted under its regulatory and supervisory powers to enforce compliance with:
- Banking Regulation Act, 1949
- Cyber security guidelines
- KYC norms
- Customer service rules
- Interest subvention scheme guidelines
- Interest subvention scheme– A government scheme to provide short-term crop loans at subsidized interest rates via KCCs
Key Facts
Banks Penalised and Fine Amounts
| Bank | Penalty Amount | Key Reason(s) for Penalty |
| ICICI Bank | ₹97.80 lakh | Violations related to cyber security, KYC norms, and credit/debit card operations |
| Axis Bank | ₹29.60 lakh | Unauthorized operation of internal/office accounts |
| Bank of Maharashtra | ₹31.80 lakh | KYC violations, particularly Aadhaar OTP-based e-KYC in non-face-to-face mode |
| Bank of Baroda | ₹61.40 lakh | Non-compliance on customer service, deposit interest, and insurance incentive norms |
| IDBI Bank | ₹31.80 lakh | Violations under the Interest Subvention Scheme for short-term agriculture loans (Kisan Credit Card – KCC) |