Document title: Reserve Bank of India imposes monetary penalty on Bank of Baroda
Issuing authority: Reserve Bank of India
Reference: Press Release: 2026-2027/604
Date: 3 July 2026
Banking and credit
The RBI found that Bank of Baroda collected interest at rates higher than the contracted rates in certain loan accounts and failed to upload KYC records of certain customers to the Central KYC Records Registry (CKYCR) within the prescribed timeline.
Regulatory and policy measures
By an order dated 30 June 2026, the RBI imposed a monetary penalty of ₹63.60 lakh on the bank under section 47A(1)(c) read with sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949. The penalty follows the Statutory Inspection for Supervisory Evaluation (ISE 2025) covering the bank’s financial position as of 31 March 2025, a show‑cause notice, the bank’s written and oral submissions, and the RBI’s determination that the violations warranted sanction. The action is limited to regulatory compliance and does not affect the validity of any customer transactions; it is imposed without prejudice to any further action the RBI may take.
The RBI’s enforcement underscores its focus on adherence to the Fair Practices Code for Lenders and KYC directives, aiming to strengthen borrower protection and AML compliance in the banking sector.