Regulatory Actions Against Major Banks

The Reserve Bank of India (RBI) has recently imposed significant penalties on four major banks, including ICICI Bank and Bank of Baroda, due to deficiencies in regulatory compliance.

Details of the Penalties

ICICI Bank faced a penalty of Rs 97.80 lakh for non-compliance with RBI's directives on 'Cyber Security Framework in Banks', 'Know Your Customer (KYC)', and 'Credit Card and Debit Card -- Issuance and Conduct'. Meanwhile, Bank of Baroda was penalized Rs 61.40 lakh for failing to adhere to guidelines on 'Financial Services provided by Banks' and 'Customer Service in Banks'.

Other Banks Under Scrutiny

IDBI Bank Ltd and Bank of Maharashtra were also penalized Rs 31.80 lakh each for their non-compliance with specific RBI directions concerning agricultural loans and KYC norms, respectively.

The RBI clarified that these penalties are based on regulatory compliance deficiencies and do not question the validity of any transactions or agreements between the banks and their customers.