RBI Action on 5 Banks: RBI Imposes ₹2.5 Crore Fine on 5 Major Banks Including ICICI, Know the Reason
RBI Action on 5 Banks: RBI Imposes ₹2.5 Crore Fine on 5 Major Banks Including ICICI, Know the Reason
RBI Action on 5 Banks: The Reserve Bank of India controls all regulations across the country and takes action against banks from time to time for violating any kind of rules. In this context, ICICI Bank, Axis Bank, Bank of Baroda, IDBI Bank, and Bank of Maharashtra have violated various rules, after which the Reserve Bank of India has taken action against them and imposed a fine of ₹2.5 crore. The Reserve Bank of India has taken this action due to various deficiencies related to cybersecurity, customer service, KYC, etc., by these banks.
ICICI, BOB Face the Highest Fine
Under this action, a fine of ₹97.8 lakh has been imposed on the private sector bank ICICI. This bank did not provide the list of cybersecurity violations to the RBI on time and did not implement any kind of alert system. Additionally, it charged customers for late payments without sending them bills.
A fine of ₹61.4 lakh has been imposed on Bank of Baroda in this action. The bank did not regularly credit interest to inactive accounts. Moreover, Bank of Baroda allowed insurance companies and employees to give non-cash incentives, which is against RBI regulations.
Irregularities Found in Axis Bank and Bank of Maharashtra
A fine of ₹29.6 lakh has been imposed on Axis Bank because this bank used various internal accounts to carry out unauthorized transactions. Meanwhile, a fine of ₹31.8 lakh has been imposed on Bank of Maharashtra because this bank opened a large number of savings accounts using only Aadhaar OTP without any KYC or face-to-face verification, and doing so is against RBI guidelines.
A fine of ₹31.8 lakh has been imposed on IDBI Bank. This bank charged excessive interest on Kisan Credit Card accounts, which is against various government schemes. In this context, the RBI has taken this serious action.
