RBI imposes Rs 1.05 cr penalty on Kotak Mahindra Bank

The Reserve Bank of India (RBI) today imposed a monetary penalty of Rupees one crore and five lakh on Kotak Mahindra Bank.

The penalty on Kotak Mahindra Bank can be attributed to non- compliance with the Banking Regulation Act, 1949 and directions on ‘Customer Protection – Limiting Liability of Customers in Unauthorised Electronic Banking Transactions’, and ‘Loans and Advances – Statutory and Other Restrictions’.

Meanwhile, a penalty of Rs 1 crore has also been imposed on IndusInd Bank for non-compliance with certain Know Your Customer (KYC) norms.

Besides, the RBI has also imposed penalties on four co-operative banks.

Penalties have also been imposed on Nav Jeevan Co-operative Bank; Balangir District Central Cooperative Bank Limited, Balangir; Dhakuria Cooperative Bank Ltd, Kolkata; and The Palani Co-operative Urban Bank Limited (No.A.331), Palani.

The penalty ranges between Rs 1 lakh and Rs 2 lakh.

The RBI, however, said the penalties are based on deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.

(With inputs from PTI)