Mint Road's enforcement framework shifts focus to governance premium

The woes at IndusInd Bank have put the spotlight back on a key initiative the banking regulator's Enforcement Department set rolling in FY24

Penalties imposed by the Reserve Bank of India (RBI) in FY24 more than doubled to ₹86.1 crore in 281 instances (it was ₹40.4 crore and 211 in FY23). Its annual report has it that fiduciary censure was up across bank groups — except foreign banks and small finance banks — and such attention was more on state-run and private banks. Compared to what’s slapped by global financial regulators which run into millions of dollars, the sums on our turf are paltry; it carries the risk of being taken as part of operating expenses. The highest till date is ₹58.9 crore