The Reserve Bank of India (RBI) imposed 353 penalties totalling Rs 54.78 crore on regulated entities (REs) for non-compliance with various statutory provisions and directions during the financial year 2024-25. The penalties were disclosed in the RBI’s Annual Report 2024-25, released on Thursday.
The RBI said the contraventions pertained to critical areas including cybersecurity frameworks in banks, exposure norms, income recognition and asset classification (IRAC) norms, Know Your Customer (KYC) directives, fraud classification and reporting, and submission of credit information to Credit Information Companies (CICs).
According to the RBI, 264 penalties amounting to Rs 15.63 crore were imposed on cooperative banks, making them the most penalised segment. Non-banking financial companies (NBFCs) and asset reconstruction companies (ARCs) faced 37 penalties totalling Rs 7.29 crore, while 13 housing finance companies were penalised to the tune of Rs 83 lakh.
In the case of traditional banking, the RBI levied penalties worth Rs 11.11 crore on eight public sector banks and Rs 14.8 crore on 15 private sector banks. Additionally, six foreign banks were also penalised, though specific figures for these were not detailed.
The enforcement actions reflect the central bank’s tightening scrutiny over financial institutions, especially as digital transactions rise and cybersecurity risks become more prominent. The RBI has emphasized its continued focus on regulatory compliance, risk governance, and transparency within the financial system.