The RBI stated that the penalties are based on regulatory compliance shortcomings and are not meant to question the legality of any transaction or arrangement made by the banks with their clients.
The Reserve Bank of India (RBI) has imposed a penalty of Rs 1 crore each on Kotak Mahindra Bank and IndusInd Bank for violating norms related to credit extension. This is the third time in less than two years that RBI has penalised banks for similar violations.
On Monday, the RBI said that it had fined Kotak Mahindra Bank and IndusInd Bank around Rs 1 crore apiece for noncompliance with regulatory requirements. In addition, the RBI has penalised four cooperative banks.
The Depositor Education and Awareness Fund Scheme, 2014, and for failing to follow the instructions on “Customer Protection – Limiting Liability of Customers in Unauthorized Electronic Banking Transactions” and “Loans and Advances – Statutory and Other Restrictions,” the banking regulator said, Kotak Mahindra Bank has been fined Rs. 1.05 crore.
According to the RBI, IndusInd Bank was fined Rs 1 crore for failing to follow certain Know Your Customer (KYC) regulations.
Additional penalties have been imposed on