Possible Penal Amount Increase As RBI Considers Framework Overhaul

The Reserve Bank of India (RBI) is considering a comprehensive review of its penalty framework, exploring options such as increasing penalty amounts, linking them to the size of regulated entities (REs), particularly for systemically important ones and addressing repeat offences. 

Additionally, the review may involve examining the clawback of payouts to chief executive officers and key management personnel (KMP). For state-run banks, the comments of the RBI's senior supervisory manager on KMP could impact their career trajectories and there is speculation about the possibility of imposing an "additional capital charge on REs."