Case Brief
What Happened
By an order dated January 30, 2023, RBI imposed a monetary penalty of ₹30.00 lakh on Bank of Baroda. The penalty was issued for non-compliance with the RBI (Know Your Customer (KYC)) Direction, 2016 and the RBI (Interest Rate on Deposits) Directions, 2016. RBI’s inspection found that the bank breached prescribed transaction limits in small accounts and failed to ensure that interest rates on certain term deposit accounts matched the rates disclosed in advance. The penalty was imposed under section 47A(1)(c) read with section 46(4)(i) and section 51(1) of the Banking Regulation Act, 1949.