RBI imposes a penalty of ₹63.60 lakh on Bank of Baroda for non-compliance with Fair Practices Code and KYC norms.
Monetary Penalty Imposed on Bank of Baroda by RBI
The Reserve Bank of India has announced a monetary penalty of ₹63.60 lakh on Bank of Baroda due to non-compliance with various provisions concerning the 'Fair Practices Code for Lenders' and 'Know Your Customer (KYC)' directives. The regulatory action dated June 30, 2026, highlights significant lapses in adherence to regulatory frameworks.
Imposed under Section 47A(1)(c) in conjunction with Sections 46(4)(i) and 46(4)(ii) of the Banking Regulation Act, 1949, the penalty illustrates the RBI's strict vigilance towards ensuring that banks follow mandatory operational standards designed to protect consumer interests and uphold the integrity of the banking system.
This development is relevant for legal advisors to banking clients, as it reinforces the importance of compliance with regulatory standards to avoid severe financial penalties. Legal practitioners should encourage clients to continuously audit their compliance procedures to mitigate risks associated with regulatory scrutiny.