RBI fines ICICI, Bank of Baroda over violations of customer protection rules

The Reserve Bank of India (RBI) has fined ICICI Bank and state-owned Bank of Baroda over violations of customer protection rules that allowed fraudsters to cash fake cheques and postal orders for up to two years.

The RBI, which regulates the country's lenders, said it had fined ICICI Bank, the country's largest private sector lender, Rs 50 lakh (US $78,561), while Bank of Baroda was fined Rs 25 lakh.

The banks were not immediately available for comment.

The central bank said its move followed a complaint over a fraud in five banks, including State Bank of India (SBI), State Bank of Patiala, and Axis Bank, besides ICICI and PSU lender Bank of Baroda.

The RBI did not impose any penalty on the other three banks but has cautioned them to ensure strict compliance of "know-your-customer" rules or (KYC norms), it said.

(Reuters)