The Reserve Bank of India (RBI) has imposed a total fine of ₹1.29 crore on three major banks—Punjab National Bank (PNB), IDFC First Bank, and Kotak Mahindra Bank—for breaking various banking rules.
The violations include wrongly charging fees from customers, lapses in the KYC process, and not following loan-related guidelines.
Here’s the full detail and whether it will affect bank customers.
Which Banks Were Fined and Why?
On Thursday, April 17, the RBI announced that it had penalized two private sector banks and one public sector bank. These fines were issued due to different types of rule violations.
Punjab National Bank (PNB)
PNB has been fined ₹29.60 lakh for not following RBI’s guidelines on customer service.
The bank had wrongly charged penalties from customers for not maintaining minimum balance in accounts that were already inactive.
The RBI took this action based on its order dated April 4, 2025, under sections 47A(1)(c), 46(4)(i), and 51(1) of the Banking Regulation Act, 1949.
IDFC First Bank
IDFC First Bank received a fine of ₹38.60 lakh for failing to comply with KYC (Know Your Customer) rules.
Specifically, the bank did not properly follow the customer verification process when opening current accounts for some sole proprietorship firms.
Kotak Mahindra Bank
Kotak Mahindra Bank faced the highest fine—₹61.40 lakh—for violating RBI guidelines related to loan delivery systems and statutory rules for loans and advances.
The bank failed to provide part of the working capital limit as loans to certain borrowers.
It also did not collect the required margin for intra-day trading limits given to some stock brokers, which is against regulatory rules.
Will This Affect Customers?
These fines were imposed for breaking rules related to customer service and financial procedures.
However, RBI has clearly stated that this action will not impact regular customers of these banks. There will be no changes in customer accounts or services due to these penalties.
