RBI Slaps Penalties On ICICI, Bank Of Baroda, Axis, And Others For Regulatory Lapses In Cybersecurity And KYC

Mumbai: The Reserve Bank on Friday said it has imposed penalties on five lenders, including ICICI Bank, Bank of Baroda, and Axis Bank, over deficiencies in certain regulatory compliances.

Penalty of Rs 97.80 lakh has been imposed on ICICI Bank for non-compliance with certain directions issued by the Reserve Bank of India (RBI) on 'Cyber Security Framework in Banks', 'Know Your Customer (KYC)', and 'Credit Card and Debit Card -- Issuance and Conduct'.

In another statement, the RBI said it has imposed a penalty of Rs 61.40 lakh on Bank of Baroda for non-compliance with certain directions on "financial services provided by banks" and "customer service in banks".

The central bank has imposed a penalty of Rs 31.8 lakh on IDBI Bank Ltd for non-compliance with certain directions on "interest subvention scheme for short-term loans for agriculture and allied activities availed through Kisan Credit Card".

A penalty of Rs 31.80 lakh was imposed on Bank of Maharashtra for non-compliance with certain directions on KYC.

The Axis bank, too, has been fined Rs 29.60 lakh over non-compliance with certain directions on "unauthorised operation of internal/office accounts".

In all cases, the RBI said the penalties are based on deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.

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