High interest rates, KYC rule violations: RBI imposes ₹63 lakh fine on this bank—do you have an account there?

Bank of Baroda: The Reserve Bank of India (RBI) has imposed a penalty of ₹63.60 lakh on Bank of Baroda. This fine was levied due to non-compliance with regulations. Here are the details.

Bank of Baroda: Nowadays, most people deposit their savings in banks to earn interest and gain benefits. Additionally, many people take loans from banks when needed. If the RBI takes action against the bank where you hold an account, it naturally raises questions in the minds of customers. Amidst this, the RBI has imposed a fine of ₹63.60 lakh on Bank of Baroda. Find out the reason behind this penalty.

Why did the RBI impose a fine on the bank?

An RBI investigation revealed that the bank failed to adhere to certain mandatory regulations regarding KYC and the 'Fair Practice Code for Lenders,' leading to the penalty. The probe also found that interest charged on certain loan accounts exceeded the prescribed limits. Furthermore, the KYC records of some customers were not uploaded to the CKYCR portal on time.

All allegations proven true

It is worth noting that the RBI examined the bank's financial position as of March 31, 2025. Lapses in regulatory compliance were discovered during this inspection, prompting the RBI to issue a show-cause notice to Bank of Baroda. After reviewing all documents, the RBI found the allegations to be substantiated and subsequently imposed the fine.

Will customers face any issues?

The RBI took this action due to the bank's non-compliance with regulations.
Therefore, this penalty will have no impact on customers' bank accounts.
The services customers currently avail from the bank will continue uninterrupted.
Customers will not be affected by this action.