The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 63.60 lakh on Bank of Baroda for non-compliance with certain regulatory directions under the Banking Regulation Act, 1949.
In an order issued on June 30, 2026, the RBI said the penalty was levied under Sections 47A(1)(c) read with 46(4)(i) and 51(1) of the Banking Regulation Act.
The action follows the RBI’s statutory inspection of the bank based on its financial position as on March 31, 2025, during which the central bank identified two instances of regulatory non-compliance.
Subsequently, the RBI issued a show-cause notice to Bank of Baroda. After reviewing the bank’s written submissions, supporting documents and oral representations made during a personal hearing, the central bank concluded that the violations had been established and warranted the imposition of the penalty.
The RBI clarified that the action relates solely to deficiencies in regulatory compliance and does not affect the validity of any transaction or agreement entered into by the bank with its customers.
It further stated that the monetary penalty is without prejudice to any additional supervisory or enforcement action that the RBI may initiate against the lender, if considered necessary.