The Reserve Bank of India (RBI) imposed smaller penalties on banks in 2025, with the median fine decreasing significantly compared to the previous two years, despite an increase in the number of instances. While the total fines amounted to ₹25.5 crore, the median penalty was ₹55.7 lakh. Experts suggest the RBI is adopting a more consultative approach, using fines to set examples rather than as a primary enforcement tool, especially amid deregulation efforts.