RBI levies Rs 63 lakh penalty on Bank of Baroda
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📌 Summary:
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RBI imposed a monetary penalty of Rs 63.60 lakh on Bank of Baroda for non-compliance with RBI directions
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Violations: the bank charged interest in certain loan accounts at rates higher than those contractually agreed (breach of Fair Practices Code for Lenders), and failed to upload KYC records of certain customers to the Central KYC Records Registry (CKYCR) within the prescribed timeline
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Penalty followed RBI's Statutory Inspection for Supervisory Evaluation (ISE 2025), conducted with reference to the bank's financial position as on March 31, 2025; a show-cause notice preceded the penalty
📝 Prelims Facts:
- Fair Practices Code for Lenders and KYC directions are issued by RBI
- CKYCR = Central KYC Records Registry, the centralised repository of KYC records
- ISE = Statutory Inspection for Supervisory Evaluation, RBI's supervisory inspection of banks
🔑 Key Term: CKYCR (Central KYC Records Registry) — centralised repository for KYC records of customers of financial institutions, enabling one-time KYC across the financial sector.
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