Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹1.00 crore on IDFC First Bank Limited by order dated March 27, 2024. The penalty was imposed after RBI's supervisory inspection (ISE 2022) found non-compliance with directions on 'Loans and Advances – Statutory and Other Restrictions'. RBI said the bank sanctioned term loans to a public sector undertaking for infrastructure projects without proper due diligence on project viability and bankability, and the repayment/servicing of the loans was made out of budgetary resources. The penalty was levied under the Banking Regulation Act, 1949, after considering the bank's reply and oral submissions.