The Reserve Bank of India has imposed monetary penalties on several financial institutions for violations relating to governance, regulatory compliance, and oversight responsibilities. These actions reflect the central bank’s continuing efforts to strengthen accountability, transparency, and risk controls across the financial sector, particularly in an environment where digital operations, privacy obligations and cybersecurity risks are increasingly intertwined with compliance standards.

Governance Failure at GoCapital Finance Limited

The Reserve Bank of India has issued the Internal Risk Assessment Guidance for Money Laundering and Terrorist Financing, offering regulated entities a structured framework to strengthen their defences against financial crime. As digital transactions expand and cyber-enabled financial fraud becomes increasingly sophisticated, this guidance supports a more secure and compliant financial ecosystem.

Strengthening Compliance Under KYC and Financial Crime Laws

The Reserve Bank of India’s latest Statement on Developmental and Regulatory Policies signals a stronger push toward responsible lending practices, secure digital ecosystems, and improved data governance—key pillars of India’s evolving cyber law and financial-privacy framework.

The Reserve Bank of India (RBI) today organised a Conference for Directors on the Boards of Small Finance Banks (SFBs) in Bengaluru, with the theme “Governance in SFBs – Driving Sustainable Growth and Stability.” The event was inaugurated by Shri Swaminathan J, Deputy Governor, RBI, and is part of the central bank’s ongoing supervisory engagements with Directors of its supervised entities. Earlier, similar conferences were held for Public Sector Banks and Private Sector Banks in May 2023, and for Urban Cooperative Banks in August 2023 and June 2024.

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1.91 crore on Axis Bank Limited for contravention of provisions under Section 19(1)(a) of the Banking Regulation Act, 1949, and non-compliance with certain RBI directives related to Interest Rate on Deposits, Know Your Customer (KYC), and Credit Flow to Agriculture – Collateral-Free Agricultural Loans. The penalty has been levied under the powers conferred by Section 47A(1)(c) read with Section 46(4)(i) of the BR Act.