The Reserve Bank of India RBI has imposed a fine of 1.05 crore on Kotak Mahindra Bank Ltd. and 1 crore on IndusInd Bank Ltd. for violating the provisions of its regulations.
The RBI imposed a fine on Kotak Mahindra Bank on June 29, 2022 for violating the provisions of banking regulations and non-compliance with customer protection guidelines.
The banking regulators have imposed a penalty on Kotak Mahindra Bank Limited for breaching the provisions of sub-section 2 of Section 26 A of the Banking Regulation Act, 1949. The Act reads with paragraph 3 of The Depositor Education and Awareness Fund Scheme, 2014, and applies to non-compliance with the directions on Customer Protection Limiting Liability of Customers in Unauthorised Electronic Banking Transactions and Advances Statutory and Other Restrictions.
The RBI also penalised IndusInd Bank for non-compliance with certain directions issued by RBI on Reserve Bank of India Know Your Customer KYC directions. 2016 RBI said these penalties are not intended to make a decision on the validity of any transaction or agreement entered by the bank with its customers.
The central bank said that the statutory inspection for supervisory evaluation of banks was conducted by the RBI with reference to its financial positions as on March 31, 2018 and March 31, 2019.