Mumbai: The Reserve Bank of India (RBI) has imposed a penalty of ₹60.40 lakh on the Bank of Baroda for failing to adhere to regulatory guidelines.
The fine stems from the bank’s failure to prevent insurance companies from offering non-cash incentives to its staff involved in insurance corporate agency services.
Furthermore, the bank did not credit interest at the prescribed intervals on certain inactive, dormant, or frozen savings accounts. This penalty is anticipated to impact the bank’s profit and loss account and may also tarnish its reputation.
The RBI’s action is seen as a response to the bank’s regulatory non-compliance. As of now, the Bank of Baroda has not issued an official statement on the matter.
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