Reserve Bank of India imposes monetary penalty on Bank of Baroda · 2026-2027/604

July 3, 2026

Reserve Bank of India imposes monetary penalty on Bank of Baroda

The Reserve Bank of India (RBI) has, by an order dated June 30, 2026, imposed a monetary penalty of ₹63.60 lakh (Rupees Sixty three lakh sixty thousand only) on Bank of Baroda (the bank) for non-compliance with certain provisions of directions issued by RBI on ‘Fair Practices Code for Lenders’ and ‘Know Your Customer (KYC)’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of section 47A(1)(c) read with sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949.

The statutory Inspection for Supervisory Evaluation (ISE 2025) of the bank was conducted by RBI with reference to its financial position as on March 31, 2025. Based on the supervisory findings of non-compliance with the provisions of RBI directions, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said provisions of RBI directions.

After considering the bank’s reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI found that the following charges against the bank were sustained, warranting imposition of monetary penalty:

i) the bank had collected interest, higher than the contracted rate of interest, in certain loan accounts. ii) the bank did not upload KYC records of certain customers onto Central KYC Records Registry (CKYCR) within the prescribed timeline.

The action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.

(Brij Raj)

Press Release: 2026-2027/604 Chief General Manager ᮧेस ᮧकाशनी PRESS RELEASE

भारतीय ᳯरज़वर् बᱹक

RESERVE BANK OF INDIA

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