RBI Cracks Down on Compliance Failures: ICICI, Axis, BoB Among Penalized Banks

The Reserve Bank of India (RBI) has imposed monetary penalties on five major banks—ICICI Bank, Axis Bank, Bank of Baroda, Bank of Maharashtra, and IDBI Bank—for regulatory lapses across cybersecurity, Know Your Customer (KYC) norms, and customer service deficiencies. ICICI Bank faced the highest fine of ₹97.80 lakh for failing to report a cybersecurity breach, inadequate alert mechanisms, and improper credit card billing practices. Axis Bank was penalized ₹29.60 lakh for unauthorized transactions through internal accounts, while Bank of Baroda incurred a ₹61.40 lakh fine for lapses in insurance-related incentives and dormant account interest payments. IDBI Bank and Bank of Maharashtra were each fined ₹31.80 lakh for violations related to agricultural loan interest rates and Aadhaar-based e-KYC procedures, respectively. The RBI clarified that these penalties are based on compliance deficiencies and do not impact customer transactions. This enforcement action underscores the central bank’s commitment to tightening regulatory oversight and ensuring financial institutions adhere to prescribed norms, reinforcing trust in the banking system.