Central Bank of India imposes a fine of 75 million rupees on ICICI Bank
The Reserve Bank of India (RBI) has imposed a penalty of ₹75 lakh on ICICI Bank for failing to comply with regulatory directions related to property valuation and the opening/maintenance of current accounts.
The penalty was announced in August 2025, following a Statutory Inspection for Supervisory Evaluation (ISE 2024) of ICICI Bank. The RBI's supervisory findings revealed non-compliance with RBI directions by the bank.
In specific cases, ICICI Bank did not carry out property valuations through independent valuers in certain mortgage loan instances, breaching RBI's norms for "Valuation of Properties – Empanelment of Valuers". The bank also opened and/or maintained current accounts that violated RBI’s regulatory guidelines requiring discipline in opening current accounts.
The RBI clarified that the penalty is solely for regulatory compliance failures and does not affect the validity of any transactions or agreements with customers. The action also leaves open the possibility of further enforcement measures against the bank if needed.
It is worth noting that this is not the first time ICICI Bank has faced penalties for non-compliance. In May 2025, the bank was penalized for other issues related to cyber security, KYC, and card issuance regulations.
In contrast, the State Bank of India (SBI) reported a 12.5% year-on-year increase in Q1 net profit at ₹19,160 crore, marking a strong performance for the bank. However, in the provided context, the RBI did not impose any penalty on SBI.
[1] - Reserve Bank of India Press Release, August 2025 [2] - ICICI Bank Penalized for Non-Compliance in May 2025 [3] - RBI Guidelines on Valuation of Properties – Empanelment of Valuers [4] - RBI Guidelines on Opening of Current Accounts by Banks - Need for discipline
- The Reserve Bank of India (RBI) imposed a penalty of ₹75 lakh on ICICI Bank in August 2025, citing failures to comply with regulatory directions concerning property valuation and the opening/maintenance of current accounts, as revealed in the ISE 2024 inspection.
- The non-compliance found during the RBI's supervisory analysis was related to specific mortgage loan instances where ICICI Bank didn't use independent valuers, breaching RBI regulations, and instances of inappropriate handling of current accounts.
- In contrast to these penalties, the business sector observed a strong performance by the State Bank of India (SBI) in Q1 of 2025, with a 12.5% year-on-year increase in net profit at ₹19,160 crore.
- The RBI's communication emphasized that the penalty on ICICI Bank was for regulatory compliance failures and did not impact the legitimacy of any customer-related transactions or agreements.
- It is pertinent to point out that this penalty is not the first ICICI Bank has faced for non-compliance issues, as it was previously fined in May 2025 over cybersecurity, KYC, and card issuance matters.
- In the realm of finance and banking policy, it is crucial for businesses to adhere to stringent RBI requirements including those related to valuation of properties and account opening, as demonstrated by the aforementioned case involving ICICI Bank.
