The Reserve Bank of India has imposed a monetary penalty of Rs. 75.00 lakh on ICICI Bank Limited for non-compliance with directions on Valuation of Properties – Empanelment of Valuers and Opening of Current Accounts by Banks – Need for discipline. The order is dated .
- Penalty amount: Rs. 75.00 lakh.
- Legal basis: Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.
- Reference inspection: ISE 2024 with reference to the bank’s position as on March 31, 2024.
What triggered the penalty
Following the Statutory Inspection for Supervisory Evaluation (ISE 2024), RBI issued a show-cause notice based on supervisory findings and subsequent correspondence. After considering the bank’s written reply, additional submissions, and oral representations during a personal hearing, RBI sustained the following charges:
- The bank did not carry out valuation of properties by independent valuers in certain mortgage loans.
- The bank opened or maintained certain current accounts in contravention of extant regulatory requirements.
Penalty details
| Entity | Action | Amount | Order date | Regulatory basis |
|---|---|---|---|---|
| ICICI Bank Limited | Monetary penalty | Rs. 75.00 lakh | August 07, 2025 | Sec. 47A(1)(c) r/w Sec. 46(4)(i), Banking Regulation Act, 1949 |
RBI’s clarification
RBI stated that the action is based on deficiencies in regulatory compliance. It does not pronounce upon the validity of any transaction or agreement between the bank and its customers. The monetary penalty is without prejudice to any other action that may be initiated by RBI.
Background of the inspection
The findings arose from RBI’s supervisory examination linked to the financial position of the bank as on March 31, 2024. The process involved a show-cause notice, review of the bank’s responses, and a personal hearing before the regulator concluded that violations had occurred.
Editor’s note: This report summarizes the regulator’s enforcement action for reader clarity. Banks are required to follow independent valuation norms in mortgage-backed lending and adhere strictly to the current account framework to maintain credit discipline.
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