RBI Penalty Summary
- RBI fines multiple banks and NBFCs for regulatory non-compliance
- Penalties range between Rs. 1 lakh and Rs. 31.80 lakh
- Violations include KYC, exposure norms, returns delay, and card conduct lapses
New Delhi: The Reserve Bank of India (RBI) has imposed monetary penalties on several cooperative banks, a foreign bank, and an NBFC for violations of regulatory norms. Below is a summary of penalties imposed during September–October 2025:
RBI Penalty Summary Table
| Institution | Penalty Amount | Reason |
|---|---|---|
| The Vaniyambadi Town Co-operative Bank Ltd. (Tamil Nadu) | Rs. 1 lakh | Loans beyond exposure limits under SAF, high-risk advances, failure to upload KYC data to CKYCR. |
| The Bagalkot District Central Co-operative Bank Ltd. (Karnataka) | Rs. 5.50 lakh | Sanctioning director-related loan and delay in submission of statutory returns to NABARD. |
| American Express Banking Corp. | Rs. 31.80 lakh | Failure to reverse certain credit card balances from refunds/failed/reversed transactions. |
| The Ranuj Nagrik Sahakari Bank Ltd. (Gujarat) | Rs. 3 lakh | Failure to ensure end-use of funds and lack of SMS reply facility for unauthorized transactions. |
| HDB Financial Services Ltd. | Rs. 4.20 lakh | Failure to obtain PAN/Form 60 in certain loan accounts during FY 2023-24 (KYC violation). |
Note: RBI clarified that these penalties were imposed for deficiencies in compliance and do not affect the validity of customer transactions. Further regulatory action may still be pursued where necessary.
Press Release References: RBI 2025-2026/1240, 1241, 1243, 1244, 1245
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