The Reserve Bank of India (RBI) has revealed in its latest annual report that it imposed penalties totaling 54.78 crore on 353 financial institutions during the last financial year. These fines were a result of various violations, including lapses in cybersecurity measures, failure to adhere to KYC (Know Your Customer) norms, and inaccuracies in credit information reporting.
The institutions penalized span across a wide range, including commercial banks, cooperative banks, non-banking financial companies (NBFCs), housing finance firms, and asset reconstruction companies. Among them, cooperative banks faced the most scrutiny, with 264 of them being fined a total of 15.63 crore. NBFCs and ARCs together paid over 7 crore in penalties, while 13 housing finance firms were fined 83 lakh.
Public sector banks were also not spared, with eight of them paying more than 11 crore in penalties. Private sector banks contributed nearly 15 crore, and even foreign banks faced action, highlighting the RBI’s strong regulatory stance across the board.
