RBI Penalises Bank of Baroda Over KYC and Fair Practice Code Lapses

Indian media reports indicate that the Reserve Bank of India (RBI) has imposed a monetary penalty on Bank of Baroda, one of India's largest public sector banks, for non-compliance with its Know Your Customer (KYC) norms and the Fair Practices Code for Lenders. Reported figures for the fine range from roughly Rs 63 lakh to Rs 67 lakh depending on the source.

In the same enforcement action window, GIC Housing Finance was reported to have been penalised separately by the regulator, underscoring that RBI's supervisory scrutiny in this period extended across both a large public sector bank and a housing-finance NBFC.

KYC and Fair Practices Code violations are among the most common grounds for RBI monetary penalties on regulated entities, and typically relate to gaps in customer due diligence, periodic KYC updation, or the conduct standards lenders are required to follow when dealing with borrowers. Penalties of this kind do not restrict a bank from continuing normal business with its customers.

BankPulse could not locate a direct RBI press release or order link for this specific penalty at the time of writing. We are publishing this as a plain-English digest of media reporting and will update this page with the official rbi.org.in citation, and correct any figures if needed, as soon as the primary source is confirmed.