Penalties surge as RBI cracks the whip on lenders
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Mumbai: Increasing enforcement of penalties by the Reserve Bank of India (RBI) last fiscal are reflected in the sharp jump on bank payments under such heads during the year. Reserve Bank of India (RBI) data in the annually published Trend and Progress of Banking in India 2023-24 shows that the total penalties paid by public sector banks increased six times to ₹24 crore in FY24. Private sector banks also paid a total of ₹25 crore in FY24, up two times from ₹12 crore paid in FY23. So far this fiscal up to November, the RBI has imposed monetary penalty on 169 regulated entities with an aggregate penalty of ₹34 crore for non-compliance with/contravention of statutory provisions or directions issued by the RBI. Analysts watching the central bank's actions closely say that regulatory action has been increasingly tough in the last few years as the RBI no longer does a yearly check of banks but a real-time monthly check. Regulated entities ha...