Bank of Baroda to Pay ₹63.60 lakh Penalty for Regulatory Violations

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹63.60 lakh on Bank of Baroda for non-compliance with certain regulatory directions, according to an order issued on June 30, 2026.

The penalty has been levied under the provisions of the Banking Regulation Act, 1949, including Sections 47A(1)(c) read with 46(4)(i) and 51(1).

During the RBI's statutory inspection based on the bank's financial position as of March 31, 2025, the central bank identified two major irregularities:

• The bank charged higher interest rates than those agreed upon with customers in certain loan accounts.
• It failed to upload the Know Your Customer (KYC) records of some customers to the Central KYC Records Registry (CKYCR) within the prescribed time frame.

Following the inspection, the RBI issued a show-cause notice to the bank. After examining Bank of Baroda's written response, supporting documents, and submissions made during a personal hearing, the central bank concluded that the charges were substantiated and imposed the penalty.

The RBI clarified that the action is based solely on deficiencies in regulatory compliance and does not affect the validity of any transactions or agreements between the bank and its customers. It also said the penalty does not prevent the central bank from initiating any further action against the lender, if required.