RBI Fines Bank of Baroda Rs 63.6 Lakh for Charging Excess Interest, KYC Lapses
The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 63.6 lakh on Bank of Baroda (BoB) for violations of its directives on interest rate charging and Know Your Customer (KYC) norms.
The central bank, in a statement issued on Friday, said the penalty was levied after an inquiry found the bank had charged interest on certain loan accounts at rates higher than those contractually agreed upon. Additionally, it had failed to upload KYC records of some customers to the Central KYC Records Registry (CKYCR) within the stipulated timeline.
The RBI stated that the charges against the bank were substantiated, warranting the imposition of a monetary penalty under the provisions of the Banking Regulation Act, 1949. The action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement between the bank and its customers.
Bank of Baroda has been directed to strengthen its internal controls to prevent such non-compliance in the future. The penalty underscores the RBI's commitment to ensuring adherence to fair lending practices and robust KYC procedures across the banking sector.
