The Reserve Bank of India (RBI) has imposed financial penalties on Bank of Maharashtra, IDBI Bank, and Bank of Baroda for failing to adhere to regulatory norms, according to a statement issued by the central bank.
The Bank of Maharashtra has been fined ₹31.80 lakh for violating norms related to the opening of deposit accounts using Aadhaar OTP-based e-KYC in a non-face-to-face mode, raising concerns over the bank’s compliance with Know Your Customer (KYC) requirements and secure onboarding practices.
IDBI Bank was also penalised ₹31.80 lakh for charging interest in excess of the prescribed rates on certain Kisan Credit Card (KCC) accounts, a breach of RBI’s interest rate directives.
The highest penalty, amounting to ₹61.40 lakh, was imposed on Bank of Baroda. The RBI cited multiple violations, including:
Providing non-cash incentives to staff involved in insurance corporate agency services, in violation of regulatory guidelines.
Failure to credit interest in inoperative, dormant, or frozen savings deposit accounts at mandated intervals.
The RBI clarified that these penalties are based on lapses in regulatory compliance, and do not call into question the validity of any customer transactions or agreements executed by the banks.
