Source: Reserve Bank of India
Context:
To uphold regulatory discipline and enhance financial sector integrity, the Reserve Bank of India (RBI) imposed monetary penalties on various regulated entities (REs) for violations of key supervisory norms during FY25.
Key Highlights:
- Total Penalties:
- ₹54.78 crore imposed through 353 enforcement actions.
- Primary Areas of Violation:
- Cybersecurity framework lapses
- Breach of Exposure norms and IRAC (Income Recognition and Asset Classification) guidelines
- Non-compliance with Know Your Customer (KYC) norms
- Inaccurate classification/reporting of frauds
- Non-reporting to CRILC (Central Repository of Information on Large Credits)
- Delay/Failure in credit data submission to Credit Information Companies (CICs)
- Breakup by Entity Type:
- 264 Cooperative Banks: ₹15.63 crore
- 37 NBFCs/ARCs: ₹7.29 crore
- 13 Housing Finance Companies (HFCs): ₹0.83 crore
- 8 Public Sector Banks: ₹11.11 crore
- 15 Private Sector Banks: ₹14.8 crore
- 6 Foreign Banks: Penalized (amount not specified)
Objective of Enforcement:
- Promote robust compliance culture
- Ensure adherence to RBI’s regulatory framework
- Strengthen sector-wide financial governance and operational discipline
