Five Major Banks Penalized by RBI; Axis and ICICI Among Those Fined

New Delhi (The Uttam Hindu): The Reserve Bank of India (RBI) has imposed monetary penalties on five prominent banks, including ICICI Bank, Axis Bank, and Bank of Baroda, for failing to comply with various regulatory guidelines. The penalties, totaling over ₹2.5 crore, were issued following a detailed examination of the banks' compliance with RBI directives.

**ICICI Bank** faced the highest penalty of ₹97.20 lakh for violations related to the cyber security framework, Know Your Customer (KYC) norms, and rules governing credit and debit cards.

**Bank of Baroda** was fined ₹61.40 lakh for not adhering to RBI instructions concerning financial services and customer service counters.

**IDBI Bank** received a penalty of ₹31.80 lakh for failing to follow the guidelines related to the interest subsidy scheme for short-term agricultural loans under the Kisan Credit Card.

**Bank of Maharashtra** was fined ₹31.80 lakh for lapses in compliance with KYC regulations.

**Axis Bank** faced a penalty of ₹29.60 lakh for non-compliance in the handling of internal and office accounts, particularly involving unauthorised operations.

The RBI clarified that these penalties are based on deficiencies in regulatory compliance and do not question the validity of any transactions or agreements made by the banks with their customers. The action serves as a reminder to all banks to maintain strict adherence to established norms and safeguard customer interests.