Case Brief
What Happened
By an order dated November 02, 2023, RBI imposed a monetary penalty of ₹4.34 crore on Bank of Baroda under Section 47A(1)(c) read with Sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949. The penalty followed supervisory examination findings that the bank had not complied with RBI directions relating to large exposure reporting/CRILC, statutory restrictions on loans and advances, and interest rate directions on deposits. RBI specifically found issues with accuracy and integrity of large-exposure data, a term loan sanctioned in substitution of budgetary resources without proper project due diligence, a working capital demand loan against subsidy receivables, and failure to pay the prescribed interest rate to senior citizens on deposits.