RBI Fines 3 Major Banks Rs 1.29 Crore – Punjab National Bank, IDFC First Bank, Kotak Mahindra Bank Penalized

The Reserve Bank of India (RBI) has taken strict action against three major banks, imposing penalties totaling Rs 1.29 crore for non-compliance with regulatory guidelines. The fines, ranging from Rs 29.60 lakh to Rs 61.40 lakh, were levied on Punjab National Bank (PNB), IDFC First Bank, and Kotak Mahindra Bank for various violations.

If you hold an account with any of these banks, here’s what you need to know about the RBI’s latest crackdown and why these penalties were issued.

Why Did RBI Fine These Banks?

1. Punjab National Bank (PNB) – Rs 29.60 Lakh Penalty

The RBI fined PNB Rs 29.60 lakh for failing to comply with customer service regulations. Specifically, the bank charged penalties for non-maintenance of minimum balance in inoperative accounts, which goes against RBI guidelines.

The central bank stated that PNB was given a chance to explain but failed to justify its actions, leading to the penalty under the Banking Regulation Act, 1949.

2. IDFC First Bank – Rs 38.60 Lakh Penalty

IDFC First Bank faced a Rs 38.60 lakh fine for violating KYC (Know Your Customer) norms. The RBI found that the bank did not conduct proper due diligence while opening current accounts for certain sole proprietorship firms.

KYC lapses can lead to financial fraud and money laundering risks, prompting the RBI to take strict action.

3. Kotak Mahindra Bank – Rs 61.40 Lakh Penalty (Highest Among the Three)

Kotak Mahindra Bank received the heaviest penalty (Rs 61.40 lakh) for non-compliance with lending rules. The RBI found that the bank:

• Failed to maintain the required loan component in working capital limits for some borrowers.

• Did not follow margin requirements for intra-day limits given to stockbrokers.

These violations could expose the bank and its customers to higher financial risks, leading to the significant penalty.

What Does This Mean for Account Holders?

If you have an account with PNB, IDFC First Bank, or Kotak Mahindra Bank, there’s no immediate impact on your deposits or transactions. However, repeated violations could lead to stricter scrutiny from the RBI, affecting customer services and banking operations in the long run.

RBI’s Stance on Banking Compliance

The RBI has been actively monitoring banks to ensure they follow regulatory guidelines. These penalties serve as a warning to other banks to adhere to rules or face consequences.

Key Takeaways:

✅ PNB fined Rs 29.60 lakh – Wrongful charges on inoperative accounts.
✅ IDFC First Bank fined Rs 38.60 lakh – KYC norm violations.
✅ Kotak Mahindra Bank fined Rs 61.40 lakh – Lending rule breaches.

Final Thoughts

The RBI’s latest penalties highlight the importance of regulatory compliance in the banking sector. While customers need not panic, they should stay informed about their bank’s adherence to RBI guidelines.