Reserve Bank of India imposes monetary penalty on Bank of Baroda

Case Brief

By an order dated June 30, 2026, RBI imposed a monetary penalty on Bank of Baroda under the Banking Regulation Act, 1949. The penalty was based on supervisory findings from ISE 2025, which sustained charges that the bank collected interest above the contracted rate in certain loan accounts and failed to upload some customers’ KYC records to CKYCR within the prescribed timeline. RBI clarified that the penalty is based on regulatory deficiencies and does not pronounce on the validity of customer transactions or agreements.