RBI slaps Rs 54.78 crore in penalties on banks and NBFCs for compliance lapses in FY25

NEW DELHI: The Reserve Bank of India (RBI) imposed penalties totalling Rs 54.78 crore on regulated entities (REs) during the fiscal year ending March 31, 2025, for contraventions and non-compliance with statutory provisions and regulatory directions.

According to the RBI's Annual Report for 2024-25, released on Thursday, the central bank undertook enforcement action in 353 cases across a wide range of regulatory breaches. These included failures in the cyber security framework, non-adherence to exposure norms, income recognition and asset classification (IRAC) rules, violations of Know Your Customer (KYC) guidelines, and delays in fraud classification and reporting.

The report further revealed that cooperative banks bore the brunt of the action, with 264 penalties amounting to Rs 15.63 crore. Non-banking financial companies (NBFCs) and asset reconstruction companies faced 37 penalties totalling Rs 7.29 crore, while 13 housing finance companies were fined Rs 83 lakh.

Among banks, the RBI penalised eight public sector banks to the tune of Rs 11.11 crore and 15 private banks faced penalties amounting to Rs 14.8 crore. Additionally, six foreign banks were also penalised for various lapses.

The RBI noted that these enforcement actions were aimed at ensuring compliance and fostering a robust and sound financial system.