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Saffron Regulator Slams Bank Of Baroda With ₹63.60 Lakh Fine Over Shameless Overcharging Of Interest Rates
Pooja Shrivastava, Anytime News Network
In a sensational and deeply embarrassing development for public sector banking, the Reserve Bank of India (RBI) has severely penalized Bank of Baroda (BoB), slapping it with a massive monetary penalty of ₹63.60 lakh! The executive order, signed off by Chief General Manager Brij Raj, comes as a brutal reality check for the banking giant after it was caught red-handed exploiting ordinary borrowers and violating critical security protocols.
The Illegitimate Interest Rate Scam! According to the explosive findings compiled during the Statutory Inspection for Supervisory Evaluation (ISE 2025), Bank of Baroda deliberately breached the ‘Fair Practices Code for Lenders’. The probe unmasked a terrifying practice where the bank arbitrarily collected interest rates that were significantly higher than the contracted rate of interest agreed upon with the customers. This is an absolute betrayal of trust, proving that the corporate machinery was illegally extracting extra money from vulnerable loan accounts.
Complete System Failure in Digital Security The scandal deepens on the digital front. Bank of Baroda miserably failed to upload vital customer KYC records onto the Central KYC Records Registry (CKYCR) within the legally mandated timelines. By ignoring these anti-money laundering frameworks, the bank left the financial system dangerously exposed. When RBI served a strict show-cause notice, BoB’s top management tried to offer defensive explanations during personal hearings, but all charges were sustained. While RBI clarified this won’t alter valid ongoing legal contracts, the penalty serves as a dark warning that even major public banks are cutting corners at the expense of common taxpayers!
