Why RBI imposed several Fines on Bank of Baroda, Why No Action on Erring Officials? AIBOBOU raises Questions and Demands Investigation

AIBOBOU (All India Bank of Baroda Officers’ Union) has written a letter to Secretary of Department of Financial Services and Chief Vigilance Commissioner of India to investigate into the fines imposed by RBI on Bank of Baroda.

AIBOBOU has request the concerned authorities to investigate into regulatory fines imposed on Bank of Baroda by RBI and lack of action against responsible officials.

Fines imposed by RBI on Bank of Baroda

The Reserve Bank of India (RBI) has imposed several fines on Bank of Baroda in recent years. Some of the fines imposed are as follows:

Date	Penalty Amount
13.02.2019	₹100 Lakhs
14.02.2019	₹100 Lakhs
08.03.2019	₹400 Lakhs
20.11.2019	₹250 Lakhs
24.11.2023	₹434 Lakhs
02.05.2025	₹61.40 Lakhs

AIBOBOU (All India Bank of Baroda Officers’ Union) had also written a letter to Bank of Baroda MD&CEO and has highlighted the apathetic and evasive attitude of the management of Bank of Baroda in dealing with grave regulatory lapses that have resulted in huge financial penalties and reputational damage to the Bank. Despite the detailed representations and follow-up letter by Union dated 05.05.2025, no meaningful action appears to have been initiated by the Bank management.

The Union said – Our organisation has attempted to ascertain whether the Chief Vigilance Officer and the Managing Director & CEO of the Bank have even taken cognisance of the repeated and serious press releases issued by the Reserve Bank of India, highlighting grave supervisory lapses for which fines totalling over Rs. 13 Crores have been imposed over the years.

An RTI application was filed seeking the details of action taken on the erring officials responsible for these fines.

However, the Bank’s Central Public Information Officer, in their reply dated 26.06.2025, gave an evasive response stating that the details of specific incidences, zone or office have not been provided, and that the disclosure is exempted under Section 8(1)(j) of the RTI Act, 2005 as it involves third-party information.

The Union has raised several questions:

• In a matter of public interest involving regulatory fines, how can accountability of serving officials be considered third-party information?
• How is the principle of transparency reconciled with such vague and obstructive responses?
• What exactly is being hidden, and from whom?

In this regard, the union has respectfully highlighted attention to Section 8(1)(j) Proviso of the RTI Act, 2005, which states:

“… the information which cannot be denied to the Parliament or a State Legislature shall not be denied to any person.”

The penalties imposed by RBI are in public domain, but the inaction on erring senior officials remains shielded from scrutiny, whereas junior branch employees are routinely proceeded against even for minor lapses under the pretext of safeguarding the Bank’s reputation.

Are we to infer that accountability and punishment are reserved only for the vulnerable field-level staff, while those in powerful positions remain untouchable despite documented and repeated lapses?

The Union has again put forward its following demands:

1. A comprehensive investigation be ordered into all the incidents for which penalties were imposed by RBI on Bank of Baroda as per the dates cited above.
2. Copies of Action Taken Reports (ATRs) be disclosed and made public.
3. Immediate directions be issued to the Bank to desist from misusing Section 8(1)(j) to shield regulatory failures.

The Union has threatened that if no proper action is taken, then they will be forced to take suitable actions to protect the image of Bank.