<h1>RBI Can Fine Banks Up to One Crore Rupees for Violations Under Banking Regulation Act, 1949; No Further Adjustments Planned.</h1> The Reserve Bank of India (RBI) has the authority to penalize banks for violating directions under the Banking Regulation Act, 1949. This includes imposing fines up to one crore rupees per violation and additional penalties for continued contraventions. Recent amendments through the Banking Laws (Amendment Act, 2012) have increased these penalties to create a more effective deterrent against violations. The RBI's strengthened regulatory powers aim to enhance compliance within the banking sector. The Minister of State for Finance confirmed that there are no current plans to further adjust the penalty regime under the Banking Regulation Act, 1949.