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The RBI has imposed penalties on HDFC Bank, Punjab & Sind Bank, and KLM Axiva Finvest.

Banking & Finance | Dated: 29 Mar 2025

In March 2025, the Reserve Bank of India (RBI) imposed monetary penalties on three financial institutions for not following RBI’s regulatory guidelines:

🎯 Key Highlights:

- HDFC Bank (based in Mumbai, Maharashtra) was fined Rs. 75 lakh for failing to comply with RBI’s Know Your Customer (KYC) regulations.
- The fine followed a statutory inspection of the bank’s financial position as of March 31, 2023, which revealed several lapses in following RBI’s rules.

💡 Other Important Facts:

(i) Punjab & Sind Bank (PSB) (based in New Delhi, Delhi) was fined Rs. 68.20 lakh for two reasons: not reporting borrowers with non-fund exposures of Rs. 5 crore or more to RBI’s Central Repository of Information on Large Credits (CRILC), and allowing Basic Savings Bank Deposit Account (BSBDA) holders to open extra savings accounts.
(ii) KLM Axiva Finvest Limited (based in Hyderabad, Telangana) was fined Rs. 10 lakh for not following the rules related to dividend declaration.

📚 Test Your Knowledge:

Which regulatory body recently imposed penalties on HDFC Bank, Punjab & Sind Bank, and KLM Axiva Finvest?

Correct Answer: RBI

🚀 Quick Recap:

About RBI

Governor : Sanjay Malhotra
Headquarter : Mumbai