RBI Levies ₹1.85 Lakh Penalty on Bank of India for Currency Chest Violations

Reserve Bank of India has imposed a monetary penalty of ₹1,85,300 on a currency chest operated by Bank of India in Kanpur. The regulatory action was taken after the central bank identified certain irregularities related to the handling of currency notes in the chest.

The bank received the communication regarding the penalty on March 11, 2026.

Reason for the Regulatory Action

According to the details provided, the penalty was imposed due to discrepancies identified in soiled note remittance operations. These included shortages in note counts as well as the presence of counterfeit and mutilated notes during the remittance process.

Currency chests are responsible for managing the storage and distribution of currency on behalf of the central bank, and they are required to strictly follow operational and compliance guidelines set by the RBI.

Limited Impact on Bank Operations

Despite the regulatory action, Bank of India stated that the monetary penalty will not have a material impact on its financial performance or operational activities. The amount involved is relatively small in comparison to the bank’s overall scale of operations.

The bank also clarified that the penalty relates specifically to the functioning of the Kanpur currency chest and does not affect the broader banking operations of the institution.

Financial Performance Highlights

The bank reported steady growth in its financial performance during Q3FY26. Operating profit for the first nine months of FY26 rose by 4% year-on-year to ₹12,023 crore, while operating profit for Q3 FY26 increased by 13% year-on-year to ₹4,193 crore. 

Net profit for the nine-month period grew by 14% year-on-year to ₹7,511 crore, and net profit for the third quarter rose by 7% year-on-year to ₹2,705 crore. Net Interest Income (NII) for 9M FY26 stood at ₹18,442 crore, with Q3 FY26 NII recorded at ₹6,461 crore. 

Meanwhile, non-interest income showed strong growth, increasing by 20% year-on-year to ₹6,665 crore during the nine months and rising by 30% year-on-year to ₹2,279 crore in the third quarter.

Bank of India Share Price Today

On March 13, 2026, Bank of India share price (NSE: BANKINDIA) opened at ₹154.06. At 11:11 AM, the share price of Bank of India was trading at ₹1151.59, down by 2.06% on the NSE.

Also Read: India Relaxes FDI Restrictions for China, Other Neighbouring Countries Under Press Note 3!

Conclusion

Regulatory penalties such as this highlight the importance of strict compliance in currency handling and remittance processes. While the financial impact on Bank of India remains minimal, the action underscores the RBI’s continued oversight to ensure accuracy and transparency in currency management systems.

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