The Reserve Bank of India (RBI) has slapped three notable banks with significant fines, aggregating up to Rs 1.29 crore. On Thursday, April 17, the central bank informed that it has fined three major lenders, including one public sector bank, with hefty fines of up to Rs 61.40 lakh.
RBI has imposed the penalties for various reasons. So, which banks are facing fine? Do you have account in any of these banks?
Punjab National Bank penalty
The Reserve Bank of India (RBI) has, by an order dated April 4, 2025, imposed a monetary penalty of ₹29.60 lakh (Rupees Twenty Nine Lakh Sixty Thousand only) on Punjab National Bank (the bank) for non-compliance with certain directions issued by RBI on 'Customer Service in Banks'. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949.
The apex bank in a notification stated that a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions. "The bank levied penal charges for non-maintenance of minimum balance in inoperative accounts," said RBI.
IDFC First Bank penalty
The central bank had imposed a monetary penalty of ₹38.60 lakh on IDFC First Bank Limited (the bank) for non-compliance with certain directions issued by RBI on 'Know Your Customer (KYC)'.
" The bank failed to undertake requisite Customer Due Diligence process for opening current accounts of certain sole proprietary firms," said RBI.
Kotak Mahindra Bank penalty
RBI imposed a monetary penalty of ₹61.40 lakh (Rupees Sixty One Lakh Forty Thousand only) on Kotak Mahindra Bank for "non-compliance with certain directions issued by RBI on 'Guidelines on Loan System for Delivery of Bank Credit' and 'Loans and Advances - Statutory and Other Restrictions'.
In its statement, the apex bank had informed that Kotak Mahindra Bank "failed to ensure that the outstanding 'loan component' was at least the specified percentage of the sanctioned fund based working capital limit for certain borrowers." Moreover, the lender did not comply with the margin requirements for intra-day limits to certain stock-brokers.
Read more news like this on www.etnownews.com