RBI Slaps Rs2.52 Crore Penalty on ICICI Bank, Axis Bank, BoM, IDBI Bank and BoB
Moneylife Digital Team 05 May 2025
Reserve Bank of India (RBI) has imposed a penalty of Rs2.52 crore penalty on ICICI Bank Ltd, Axis Bank Ltd, Bank of Maharashtra (BoM), IDBI Bank Ltd and Bank of Baroda (BoM) for non-compliance with the directions issued by the banking regulator. The highest penalty of Rs97.80 lakh has been imposed on ICICI Bank.
 
ICICI Bank has been penalised for non-compliance with directions issued by RBI on cyber security framework in banks, know-your-customer (KYC) and credit card and debit card issuance and conduct.
 
After conducting the statutory inspection for supervisory evaluation (ISE 2023), RBI observed several lapses by ICICI Bank. The lender failed to report a cybersecurity incident to the central bank within the stipulated timeframe. It also did not implement a robust alert system for certain categories of accounts. Additionally, ICICI Bank did not send credit card bills or statements to some customers but still levied late payment charges on them.
 
BoB has been fined Rs61.40 lakh for non-compliance with  RBI directions related to financial services provided by banks, customer service and interest rates on deposits. RBI found that the lender failed to ensure that no non-cash incentives were paid by an insurance company to its staff involved in insurance corporate agency services. Additionally, BoB did not credit interest at the prescribed intervals to certain inoperative, dormant, or frozen savings deposit accounts.
 
RBI's statutory inspection of BoM found out that the lender did not adhere to certain regulatory requirements in respect of several deposit accounts opened using Aadhaar and one-time password (OTP) based e-KYC, in non-face-to-face mode. As a result, RBI has imposed a penalty of Rs31.80 lakh on BoM.
 
Further, IDBI Bank was penalised Rs31.80 lakh for non-compliance with RBI directions related to the interest subvention scheme for short-term loans for agriculture and allied activities availed through kisan credit cards (KCC). IDBI Bank was found to have charged interest at rates higher than the applicable rate in certain KCC accounts.
 
Axis Bank was penalised Rs29.60 lakh for non-compliance with RBI directions on unauthorised operation of internal or office accounts. The Bank was found to have routed unauthorised or unrelated transactions through certain internal or office accounts.
 
"After considering the reply and oral submissions of all the banks during the personal hearing, RBI concluded that the charges of non-compliance with directions were substantiated and warranted imposition of monetary penalty," RBI says.
 
In all five cases, RBI says the penalties are based on deficiencies in regulatory compliance and are not intended to be pronounced on the validity of any transaction or agreement they entered into with their customer.
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