The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 61.40 lakh (Rupees Sixty One Lakh Forty Thousand only) on Bank of Baroda for non-compliance with certain directions issued by RBI on Financial Services provided by Banks and Customer Service in Banks read with Interest Rate on Deposits.
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| RBI Imposes Rs 61.4 lakh Penalty on Bank of Baroda |
RBI Imposes ₹61.4 lakh Penalty on Bank of Baroda
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹61.40 lakh on Bank of Baroda for non-compliance with certain directions issued by RBI on Financial Services provided by Banks and Customer Service in Banks read with Interest Rate on Deposits.
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This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949.
RBI Imposes Penalty on Bank of Baroda: Background
The statutory Inspection for Supervisory Evaluation (ISE 2023) of the bank was conducted by RBI with reference to its financial position as on March 31, 2023.
RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:
- The bank failed to ensure that no incentive (non-cash) was paid to its staff engaged in insurance corporate agency service by an insurance company; and
- The bank did not credit interest in certain inoperative/dormant/frozen savings deposit accounts at the prescribed intervals.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
About Bank of Baroda
Bank of Baroda is an Indian state-owned banking and financial services company headquartered in Vadodara (earlier known as Baroda) in Gujarat, India.
Founder of Bank of Baroda
Bank of Baroda was founded by the Maharaja of Baroda, Maharaja Sayajirao Gaekwad III on 20 July 1908. The bank, along with 13 other major commercial banks of India, was nationalised on 19 July 1969, by the Government of India and has been designated as a profit-making public sector undertaking (PSU).
Mission of Bank of Baroda
The Bank of Baroda to be a top ranking National Bank of International Standards committed to augmenting stakeholders' value through concern, care and competence.
About Reserve Bank of India (RBI)
The Reserve Bank of India was established on April 1, 1935 according to the provisions of the Reserve Bank of India Act, 1934. The headquarters of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937.
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Initially the bank was privately owned, but since nationalization in 1949 it is fully owned by the Government of India.
Governor of RBI
The current Governor of the Reserve Bank of India is Sanjay Malhotra. He replaced Shaktikanta Das as the governor.
Deputy Governor of RBI
The 4 Deputy Governors are appointed in the Reserve Bank of India (RBI), who are as follows.
- M. Rajeshwar Rao
- T. Rabi Sankar
- Swaminathan J
- Dr Poonam Gupta
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Static Current Affairs related to RBI for upcoming exams
- Establishment: 1 April 1935
- Headquarters: Mumbai, Maharashtra
- Governor: Sanjay Malhotra
- Deputy Governor: Swaminathan J, M. Rajeshwar Rao, T. Rabi Sankar and Poonam Gupta
- Ownership: Ministry of Finance , Government of India
Static Current Affairs related to Bank of Baroda for upcoming exams
- Founded: 20 July 1908
- Founder: Sayajirao Gaekwad III
- Headquarters: Vadodara, Gujarat
- Chairman: M.R. Kumar
- Managing Director & CEO: Debadatta Chand
- Number of Branches: 9,693 Branches
- Number of ATMs: 10,033+ ATMs (March 2023)
- Number of employees: 74,227 (2024)
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