RBI Slaps ₹66.70 Lakh Penalty on Bank of Baroda, GIC Housing Finance for KYC, Fair Practices Lapses
Moneylife Digital Team 06 July 2026
Reserve Bank of India (RBI) has imposed penalties totalling ₹66.70 lakh on Bank of Baroda and GIC Housing Finance Ltd, a housing finance company (HFC), for non-compliance with directions issued by the banking regulator.  The highest penalty of ₹63.60 lakh was imposed on Bank of Baroda. GIC Housing Finance was penalised ₹3.10 lakh.
 
Bank of Baroda has been penalised for non-compliance with certain provisions of RBI directions on the fair practices code for lenders and know-your-customer (KYC) norms.
 
RBI's statutory inspection found that Bank of Baroda had charged interest higher than the contracted rate in certain loan accounts. The inspection also revealed that the lender failed to upload the KYC records of some customers to the central KYC records registry (CKYCR) within the prescribed timeline.
 
Further, GIC Housing Finance has been penalised for non-compliance with certain provisions of the RBI's KYC directions. RBI found that the HFC had failed to implement a system for the periodic review of customers' risk categorisation, as required. Under the KYC directions, such risk categorisation must be reviewed at least once every six months.
 
In both cases, RBI says penalties are based on deficiencies in regulatory compliance and are not intended to pronounce on the validity of any transaction or agreement they entered into with their customers.
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