The RBI stated that the violations involved key areas such as bank cybersecurity rules, exposure limits, income recognition and asset classification (IRAC) rules, KYC guidelines, fraud detection and reporting, and submitting credit data to Credit Information Companies (CICs).
In the financial year 2024-25, the Reserve Bank of India (RBI) issued 353 fines totaling Rs 54.78 crore to regulated entities (REs) for breaking various laws and instructions. This information was shared in the RBI’s Annual Report 2024-25, released on Thursday.
The RBI highlighted that most violations were in critical areas like cybersecurity, exposure norms, IRAC standards, KYC rules, fraud reporting, and credit data uploads to CICs.
The report shows 264 fines of Rs 15.63 crore were given to cooperative banks, making them the most fined group. Non-bank financial companies (NBFCs) and asset reconstruction firms (ARCs) faced 37 penalties totaling Rs 7.29 crore. Thirteen housing finance firms were fined Rs 83 lakh.
In traditional banking, eight public sector banks were fined Rs 11.11 crore. Fifteen private banks received Rs 14.8 crore in penalties. Six foreign banks were also fined, but specific amounts weren’t listed.