Why in the news
A report by FACE, a recognised self-regulatory organisation, tallied the RBI’s penalties on regulated entities during FY25.
Key facts
| Entity | Actions | Share of cases | Share of penalty |
|---|
| NBFCs | 48 | 60% | 18% |
| Banks | 30 | 38% | 82% |
| Credit bureaus | 1 | 2% | – |
| Total | 79 | 100% | ₹33 crore |
Notes
- RRBs and Cooperative Banks were outside the report.
Common violations
- KYC and Fair Practices Code breaches.
- Governance lapses and digital lending violations.
- Reporting, disclosure and outsourcing gaps.
Largest penalties
| Bank | Fine | Reason |
|---|
| J&K Bank | ₹3.31 crore | Dual BSBDA and savings accounts; beneficial owners missed; small account and subsidy-linked loan lapses |
| UCO Bank | ₹2 crore | Several regulatory norms |
| Axis Bank | ₹1.9 crore | Multiple regulatory breaches |
Exam angle
- Terms: KYC, BSBDA, beneficial owner, Fair Practices Code.
- Self-regulatory organisation: FACE.