RBI Imposes Penalties on ICICI, Axis, and Other Banks for Regulatory Lapses
RBI Imposes Penalties on ICICI, Axis, and Other Banks for Regulatory Lapses
The Reserve Bank of India (RBI) has levied monetary penalties on five banks—including ICICI Bank, Axis Bank, Bank of Maharashtra, IDBI Bank, and Bank of Baroda—for various regulatory compliance deficiencies. The fines range up to ₹98 lakh.
Bank of Maharashtra has been penalized ₹31.80 lakh for non-compliance with regulatory requirements concerning deposit accounts opened using Aadhaar OTP-based e-KYC in non-face-to-face mode.
Axis Bank has been fined ₹29.60 lakh for routing unauthorized or unrelated entries through certain internal accounts. The RBI also noted that the bank failed to preserve customer identification records and did not obtain necessary declarations when opening current accounts. Additionally, Axis Bank’s subsidiary engaged in technology services, which is not permissible for a banking company.
ICICI Bank faces a ₹97.80 lakh penalty for multiple violations. The RBI cited the bank’s failure to report a cybersecurity incident within the stipulated timeline and its inability to implement robust software for sending alerts for certain categories of accounts. Furthermore, ICICI Bank did not send bills or statements to certain credit card customers but levied late payment charges on them nonetheless.
Bank of Maharashtra has been penalized ₹31.80 lakh for non-compliance with regulatory requirements concerning deposit accounts opened using Aadhaar OTP-based e-KYC in non-face-to-face mode. IDBI Bank was fined ₹31.80 lakh for charging interest exceeding the applicable rate in certain Kisan Credit Card (KCC) accounts.
Bank of Baroda faces a ₹61.40 lakh fine for failing to ensure that no non-cash incentives were paid to its staff engaged in insurance corporate agency services and for not crediting interest in certain inoperative, dormant, or frozen savings deposit accounts at the prescribed intervals.
The RBI clarified that these penalties are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.
