RBI Penalizes Bank of Baroda with Rs 63.60 Lacs for Loan Interest and KYC Compliance Issues
The Reserve Bank of India (RBI) has imposed a penalty totaling Rs 63.60 lacs on the Bank of Baroda following investigations into lending practices and compliance regarding customer records. The action was taken on July 3, 2026.The RBI’s directive outlined two key areas of non-compliance committed by the bank. These issues relate to interest collection on loans and the adherence to KYC (Know Your Customer) requirements for certain clientele.
In detail, the penalty relates to:
1. The Bank having collected interest that was higher than the contracted rate of interest in specific loan accounts.
2. Failure to upload the KYC records of certain customers onto the Central KYC Records Registry (CKYCR) within the prescribed timeframe.
The financial impact of this action is set at Rs 63.60 lacs, which the bank reports will affect its Profit and Loss (P&L) statement.
A summary of the disciplinary actions taken by the Reserve Bank of India against the Bank of Baroda:
| Authority | Penalty Imposed | Date of Direction/Order | Violation Details | Financial Impact |
|---|---|---|---|---|
| Reserve Bank of India | Rs 63.60 lacs | July 3, 2026 | Collection of interest higher than contracted rate on certain loan accounts and failure to upload KYC records to CKYCR in a timely manner. | Rs 63.60 lacs (Impacted on P&L) |
BANKBARODA Stock Price Movement
Bank of Baroda shares slipped today, settling at ₹253.00 after shedding ₹7.25 or 2.79% in post-market trading. The stock saw considerable activity, finishing with a traded volume totaling approximately 39.34 million shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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