RBI Slaps Rs 75 Lakh Fine on ICICI Bank for Regulatory Lapses
RBI fines ICICI Bank ₹75 lakh for lapses in property valuation and current account norms, citing regulatory compliance deficiencies.
- Republic Business
- 2 min read
The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 75 lakh on ICICI Bank Limited for breaching certain regulatory norms related to property valuation and the opening of current accounts. The central bank announced the action in an official notification issued on Friday.
According to the RBI, a supervisory review revealed that the bank had failed to comply with its directions under two key guidelines — ‘Valuation of Properties – Empanelment of Valuers’ and ‘Opening of Current Accounts by Banks – Need for Discipline’.
In the first instance, ICICI Bank did not conduct property valuations through independent, RBI-approved valuers for certain mortgage loan cases. Independent valuation is a critical safeguard designed to ensure accurate assessment of collateral and reduce credit risk in the banking system.
In the second, the bank was found to have opened or maintained current accounts for some customers in a manner that breached existing regulatory restrictions.
RBI’s current account norms are aimed at improving credit discipline, preventing fund diversion, and strengthening monitoring of borrower transactions.
The RBI clarified that the penalty has been imposed for “deficiencies in regulatory compliance” and does not question the legality or validity of any transactions undertaken with customers. It also emphasised that this action is strictly based on compliance issues and does not preclude the regulator from taking further measures if deemed necessary.
IICICI Bank could not be immediately contacted by Republic Business for comments.
While monetary penalties of this nature are not uncommon, they serve as a reminder to banks about the importance of adhering to regulatory frameworks that protect the integrity of the financial system.
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ICICI Bank, one of India’s largest private lenders, has not yet issued an official response on the matter.
The central bank has, in recent months, tightened scrutiny of operational and compliance lapses across the banking sector, reiterating its commitment to maintaining discipline and systemic stability in India’s financial institutions.