TestCloud
Prep • Practice • Perform
Log In

RBI Imposes ₹75 Lakh Penalty on ICICI Bank for Regulatory Breaches.

Banking & Finance | Dated: 11 Aug 2025

On August 7, 2025, the Reserve Bank of India (RBI) imposed a monetary penalty of ₹75 lakh on ICICI Bank Limited for non-compliance with regulatory guidelines concerning property valuation and the opening of current accounts. The penalty was levied following a statutory inspection for supervisory evaluation (ISE 2024), which examined the bank's financial position as of March 31, 2024.

🎯 Key Highlights:

  • - The RBI's inspection revealed that ICICI Bank failed to conduct property valuations through independent, RBI-approved valuers in certain mortgage loan cases. Additionally, the bank was found to have opened or maintained current accounts in violation of existing regulatory guidelines. These lapses were deemed significant enough to warrant the imposition of a monetary penalty.
  • - The penalty was imposed under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.

💡 Other Important Facts:

  • (i) The RBI emphasized that the action was based solely on deficiencies in regulatory compliance and does not affect the validity of any transactions or agreements entered into by ICICI Bank with its customers. Furthermore, the RBI clarified that this penalty is without prejudice to any further supervisory or enforcement action that may be initiated against the bank.
  • (ii) This action underscores the RBI's commitment to enforcing strict adherence to regulatory norms in the banking sector. It serves as a reminder to financial institutions about the importance of compliance with established guidelines, particularly concerning property valuations and the management of current accounts.
  • (iii) The RBI's proactive approach aims to maintain the integrity and stability of the banking system, ensuring that customer interests are safeguarded.

📚 Test Your Knowledge:

Which bank was recently fined ₹75 lakh by the Reserve Bank of India (RBI)?

Correct Answer: ICICI Bank

🚀 Quick Recap:

About RBI

  • Governor : Sanjay Malhotra
  • Headquarter : Mumbai