Guwahati: The Reserve Bank of India (RBI) on Friday imposed monetary penalties on five Indian banks for violating regulatory norms.
The central bank fined ICICI Bank, Axis Bank, IDBI Bank, Bank of Maharashtra, and Bank of Baroda for various compliance failures.
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RBI slapped a Rs 98 lakh penalty on ICICI Bank for breaching the cyber security framework, violating Know Your Customer (KYC) regulations, and mishandling the issuance and conduct of credit and debit cards.
According to the RBI, ICICI Bank failed to report a cybersecurity incident within the required timeframe, did not implement adequate alert systems for certain account categories, and sent no credit card bills or statements to some customers while levying late payment charges.
Axis Bank faced a Rs 29.60 lakh penalty after the RBI found it had carried out unauthorized operations in internal and office accounts, pointing to weak internal controls.
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Bank of Maharashtra received a Rs 31.80 lakh fine for non-compliance with KYC norms, while the RBI fined Bank of Baroda Rs 61.40 lakh for ignoring customer service and financial service directives, including those related to interest rates on deposits.
RBI also penalized IDBI Bank Rs 61.40 lakh for violating guidelines under the interest subvention scheme tied to short-term agricultural loans disbursed through the Kisan Credit Card (KCC) platform.
Reaffirming its stance on strict regulatory enforcement, the RBI said these penalties aim to strengthen compliance culture, improve banking practices, and safeguard customer interests.
It clarified that the actions are based on identified compliance deficiencies and do not affect the validity of transactions between the banks and their customers.