The Reserve Bank of India (RBI) said on Thursday (April 17) that it has imposed heavy fines on three major banks. This includes two private and one public sector bank. This action has been taken against these three banks for violating different rules. Let us know why these banks have been fined and whether it will have any effect on the customers.
Punjab National Bank (PNB)
RBI imposed a fine of ₹ 29.60 lakh on PNB for violating the guidelines related to ‘Customer Service in Banks’ in an order dated April 4, 2025. The bank had wrongly charged fines from customers for not maintaining minimum balance in inoperative accounts. This action was taken under sections 47A(1)(c), 46(4)(i) and 51(1) of the Banking Regulation Act, 1949.
IDFC First Bank
IDFC First Bank was fined ₹38.60 lakh for violating KYC norms. The bank did not follow the required customer due diligence process while opening current accounts of some sole proprietorship firms.
Kotak Mahindra Bank
The biggest penalty of ₹61.40 lakh was imposed on Kotak Mahindra Bank for violating RBI guidelines related to ‘Loan System for Delivery of Bank Credit’ and ‘Loans and Advances – Statutory and Other Restrictions’.
The bank failed to disburse the stipulated portion of the working capital limit to some borrowers as loans. Apart from this, the bank did not take the required margin for intra-day trading limits given to some stock brokers, which is a violation of regulatory rules.
The fines imposed on these three banks – PNB, IDFC First Bank and Kotak Mahindra Bank – have been imposed for violating the rules of customer services and financial transparency. These will not have any impact on the customers of the banks.
