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‘Executives are Being Protected’: BoB Officers’ Union Slams Silence on ₹13 Crore RBI Fines and RTI Block
The All India Bank of Baroda Officers’ Union has accused Bank of Baroda of maintaining double standards. It alleged that the bank is shielding top executives after the Reserve Bank of India imposed heavy penalties for regulatory lapses. The union’s Right to Information query was denied, citing privacy laws, sparking further outrage over the lack of transparency.
Author: Kalyani Mali
Published: July 4, 2025
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In a letter dated 27 June 2025, the All India Bank of Baroda Officers’ Union (AIBOBOU) raised serious concerns over the management’s inaction on multiple fines imposed by the Reserve Bank of India (RBI). The union said no internal steps appear to have been taken despite repeated lapses and official RBI press releases. When the union filed a Right to Information (RTI) to seek details of action taken against responsible officials, the bank denied the information, citing Section 8(1)(j) of the RTI Act.
Details of RBI Penalties
The union listed six penalties imposed by RBI through official press releases between 2019 and 2025, totaling over ₹13 crore:
- ₹1 crore on 13 February 2019
- ₹1 crore on 14 February 2019
- ₹4 crore on 8 March 2019
- ₹2.5 crore on 20 November 2019
- ₹4.34 crore on 24 November 2023 and ₹61.40 lakh on 2 May 2025
The union noted that these repeated fines caused both financial and reputational loss to the bank. It questioned whether the Chief Vigilance Officer or the Managing Director & CEO had taken any cognisance of the RBI’s press releases or taken action on the supervisory lapses that led to the penalties.
RTI Request and Denial
To seek clarity on whether any action was taken against the erring officials, the union filed a Right to Information (RTI) application. In its reply dated 26 June 2025, the Central Public Information Officer of Bank of Baroda refused to provide the requested details. The reply stated that:
- The RTI did not specify the zones or offices involved
- Disclosure was exempt under Section 8(1)(j) of the RTI Act, 2005, as it involved third-party information
- Previous Central Information Commission decisions were cited to justify the denial
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The bank, however, mentioned that action taken reports (ATRs) are available through annual reports and other published sources.
The bank, however, mentioned that action taken reports (ATRs) are available through annual reports and other published sources.
General Secretary K. Sriniwasrao noted in response to the RTI reply:
“Bank is not inclined to provide information about action taken against the officials.”
Image: RTI reply dated 26.06.2025 from Bank of Baroda, denying disclosure under Section 8(1)(j) of the RTI Act
Courtesy: K. Sriniwasrao, General Secretary, AIBOBOU
Union’s Response to RTI Denial and Letter to Authorities
In its letter dated 27 June 2025, the AIBOBOU expressed shock over the denial of RTI information and described the bank’s reply as “evasive.” The union questioned how accountability for regulatory fines can be treated as private third-party information and how such denial aligns with the principle of transparency in a public sector bank. It asked what exactly is being hidden and from whom. Referring to the provision under Section 8(1)(j) of the RTI Act, the union quoted, “...the information which cannot be denied to the Parliament or a State Legislature shall not be denied to any person.” It also pointed out that RBI penalties are already in the public domain, yet no internal accountability is visible, unlike in the case of junior staff who are routinely penalised for minor lapses.
The union addressed its letter to the Department of Financial Services and the Chief Vigilance Commissioner, demanding a full investigation into all RBI penalty cases, public disclosure of Action Taken Reports (ATRs), and directions to the bank not to misuse RTI provisions to avoid responsibility. It further warned that if no action is taken again, the matter would be treated as deemed approval to initiate legal proceedings against those responsible for the financial and reputational losses caused to the bank.
Image: AIBOBOU letter dated 27.06.2025 to Finance Ministry and CVC demanding action on RBI penalties and internal accountability
Courtesy: K. Sriniwasrao, General Secretary, AIBOBOU
‘Executives Are Involved, So They’re Being Protected'
Speaking to Kanal, General Secretary K. Sriniwasrao alleged systemic inaction and double standards in the bank’s handling of serious regulatory lapses. “The bank is keeping quiet because executives are involved, they are trying to protect them. The majority association is hand in glove with the management. They will never raise this issue because it would damage the bank’s reputation,” he said.
Citing past correspondence and regulatory penalties, Sriniwasrao elaborated: “Earlier letters referred to loans given to government departments, using future subsidy receivables as collateral. These subsidies were meant for the poor, women, or minority communities. Using them as loan security is a clear violation of rules, and that’s why RBI fined the bank ₹4 crore.”
He pointed to discrepancies in how accountability is enforced: “If a gold loan turns out spurious, the gold goes missing, and staff are suspended, charge sheets are issued, and it hits the local press. But in this case, RBI itself issued a public press release. Anyone—even from abroad—can see it. The whole world now knows the bank failed to follow rules, yet nothing has been done.”
On the issue of regulatory penalties and transparency, Sriniwasrao added: “This is a much bigger reputational loss, but no action has been taken. The bank is applying double standards. For small lapses, staff are punished. But here, because top executives are involved, there’s total silence.”
“Over the years, RBI has fined the bank nearly ₹19 crore. Still, no corrective steps have been taken. Even RTI replies are being denied using the wrong legal clauses. This isn’t transparency—the bank is hiding the truth, even though it’s a government institution.”
The All India Bank of Baroda Officers’ Union has raised formal objections regarding the handling of regulatory penalties imposed by the Reserve Bank of India and the denial of related information under the RTI Act. The union has submitted a letter to the Department of Financial Services and the Central Vigilance Commission, requesting investigation, disclosure of action taken, and clarification on the application of RTI provisions.
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