The Reserve Bank of India imposed a penalty of Rs 63.60 lacs on Bank of Baroda for specific regulatory non-compliances regarding loan interest and customer verification processes. The monetary penalty was received by the bank on July 3, 2026, and will directly impact its profit and loss statement for the period. The action was taken under the central bank's supervisory powers, highlighting operational gaps in adherence to prescribed norms.

Details of the Violation

The regulatory order identified two specific instances of non-compliance that led to the financial penalty. The first instance involved the bank collecting interest higher than the contracted rate of interest in certain loan accounts. The second violation pertained to the bank's failure to upload Know Your Customer (KYC) records of certain customers onto the Central KYC Records Registry (CKYCR) within the prescribed timeline.

Financial Impact

The bank acknowledged that the penalty of Rs 63.60 lacs would have a quantifiable impact on its financial operations. The amount has been booked as an expense, affecting the overall profitability for the reporting period. The disclosure was made to the stock exchanges in compliance with Regulation 30 of the SEBI (LODR) Regulations, 2015.

The communication was formally signed by S Balakumar, Company Secretary of Bank of Baroda, and submitted to both BSE Ltd. and the National Stock Exchange of India Ltd. to ensure public dissemination of the regulatory action.

NSE Clearing Ltd imposed a penalty of Rs 13.76 lakhs on BOB Capital Markets Limited, a subsidiary of Bank of Baroda , on July 3, 2026. The penalty arises from a client code modification error where a dealer executed a trade in NIAIF instead of the correct code NIAF7 (Institutional). The financial impact of this penalty will be reflected in the profit and loss account of the subsidiary.

Details of the Penalty

The regulatory action was communicated to the stock exchanges under Regulation 30 read with Para A of Part A of Schedule III of the SEBI (LODR) Regulations 2015. The specific violation involved a punching error by a dealer resulting in the execution of a trade under an incorrect client code.

The disclosure was filed by S Balakumar, Company Secretary, on behalf of the company.