RBI imposes penalties on five major banks for compliance failures

Mumbai: The Reserve Bank of India imposed a monetary penalty on five banks --ICICI Bank, Axis Bank, Bank of Maharashtra, Bank of Baroda and IDBI Bank. ICICI Bank was fined ₹97.8 lakh, Axis Bank ₹29.6 lakh, Bank of Maharashtra ₹31.8 lakh, Bank of Baroda ₹61.4 lakh and IDBI Bank ₹ 31.8 lakh on Friday.

ICICI Bank was fined for non compliance on cyber security framework in banks, know your customer (KYC) regulations, and credit card and debit card - issuance and conduct.

RBI said that ICICI Bank failed to report a cyber security incident to RBI within the stipulated timeline, failed to put into use a robust software for throwing alerts for certain categories of accounts and failed to send credit card bills / statements to certain customers, but levied late payment charges.

RBI levied penalty on Axis Bank for non compliance on unauthorised operation of internal / office accounts

On the other hand, Bank of Maharashtra was fined for non compliance on KYC related regulations, Bank of Baroda was fined for non-compliance with certain directions on financial services provided by the bank and customer service in banks read with interest rate on deposits. IDBI Bank was fined for non compliance with regulations on interest subvention scheme for short term loans for agriculture and allied activities availed through kisan credit card (KCC).