Bank undergoes Rs 7500000 fine from RBI due to...; not involving State Bank of India, Bank of Baroda, Kotak Mahindra Bank
The Reserve Bank of India (RBI) has imposed a penalty of Rs 75 lakh on ICICI Bank due to regulatory compliance failures. The penalty was levied on August 7, 2025, after supervisory findings during the Statutory Inspection for Supervisory Evaluation (ISE 2024).
The penalty was imposed for non-compliance with regulatory directions concerning property valuation and the opening of current accounts. Specifically, the RBI found that ICICI Bank failed to conduct property valuations for certain mortgage loans through independent, RBI-approved empanelled valuers, violating RBI guidelines on "Valuation of Properties – Empanelment of Valuers." Additionally, the bank was found to have opened or maintained current accounts for some customers in a manner that breached RBI's "Opening of Current Accounts by Banks – Need for Discipline" norms, which are designed to improve credit discipline and prevent diversion of funds.
The notice issued to ICICI Bank asked the bank to show cause why a penalty should not be imposed for these violations. However, the RBI clarified that the imposition of this penalty is without prejudice or bias to any further supervisory or enforcement action that may be initiated against the bank.
It is important to note that the penalty does not impact the validity of any transactions or agreements entered into by ICICI Bank with its customers. The bank's market cap as of August 8, 2025, stands at Rs 10.24 lakh crore, and its shares closed at Rs 1,432 on Friday.
The report of this penalty was first reported by MoneyControl and the report was updated on Aug 08, 2025. This penalty serves as a reminder to all banks to adhere to regulatory guidelines and maintain high standards of compliance.
- The regulatory breaches in ICICI Bank's property valuation and current account opening practices have drawn attention from the Reserve Bank of India (RBI), echoing concerns about the banking-and-insurance industry in India.
- The Bollywood and cricket industries, often linked to India's financial sector, may be impacted if banking regulations continue to be flouted, causing nervousness among investors and potentially affecting future business deals.
- The recently imposed Rs 75 lakh penalty on ICICI Bank, due to non-compliance with RBI norms, is a clear signal that the finance industry in India must align itself with the rules and regulations set forth by the central banking authority to maintain trust and stability, ensuring growth in sectors like Bollywood and cricket.
