Mumbai, July 3, 2026: The Reserve Bank of India (RBI) on Friday said it has imposed a penalty of Rs 63.6 lakh on Bank of Baroda for non-compliance with certain provisions of the 'Fair Practices Code for Lenders' and 'Know Your Customer (KYC)' norms.
A penalty of Rs 3.1 lakh has also been imposed on GIC Housing Finance Ltd for non-compliance with certain provisions of the KYC guidelines.
RBI Cites Regulatory Lapses
In a statement, the RBI said it had conducted a statutory inspection for the supervisory evaluation of Bank of Baroda with reference to its financial position as on March 31, 2025, and a notice was issued to the lender.
After considering the bank's reply to the notice, the RBI found that the public sector lender had collected interest higher than the contracted rate of interest in certain loan accounts.
It also did not upload KYC records of certain customers to the Central KYC Records Registry (CKYCR) within the prescribed timeline, the RBI said.
GIC Housing Finance Penalised
In another statement, the RBI said a statutory inspection of GIC Housing Finance Ltd was conducted by the National Housing Bank with reference to its financial position as on March 31, 2025. In this case, a notice was also issued.
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The company failed to put in place a system of periodic review of risk categorisation of accounts, with such periodicity being at least once in six months, the RBI said while imposing the penalty on GIC Housing Finance.
In both cases, the central bank said the penalties are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers.
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