RBI imposes monetary penalty on ICICI Bank

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹75 lakh on ICICI Bank for not following certain regulatory guidelines. This decision was made through an official order dated August 7, 2025.

Why was the penalty imposed?

According to RBI, ICICI Bank did not comply with given below guidelines:

1. Valuation of Properties – Empanelment of Valuers:
   RBI rules require banks to get properties independently valued by approved valuers while giving mortgage-based loans. But ICICI Bank failed to do so in certain cases, meaning it didn’t use independent valuers as required.
2. Opening of Current Accounts – Need for Discipline:
   RBI has strict rules on how current accounts should be opened and maintained, to ensure transparency and avoid misuse. But ICICI Bank opened or maintained some current accounts that violated these rules.

RBI carried out a Statutory Inspection for Supervisory Evaluation (ISE) in 2024, reviewing ICICI Bank’s financial position as of March 31, 2024. During this inspection, the RBI found evidence of non-compliance with the above guidelines.

RBI then sent a show cause notice to ICICI Bank, asking the bank to explain why a penalty should not be imposed. The bank responded in writing, submitted additional explanations, and also made oral arguments during a personal hearing. However, after reviewing everything, RBI found the violations to be valid and decided to impose the fine.