• RBI fines Kotak Mahindra Bank and IndusInd Bank each Rs 1 crore

    Business
    RBI fines Kotak Mahindra Bank and IndusInd Bank each Rs 1 crore

    Moreover, the RBI stated that  IndusInd Bank was fined Rs 1 crore for failing to follow certain Know Your Customer (KYC) regulations.


    Digital Desk: The Reserve Bank of India (RBI) announced on Monday that it had fined IndusInd Bank and Kotak Mahindra Bank Rs 1 crore each for non-compliance with regulatory requirements. In addition, the RBI has fined four cooperative banks. 


    "Kotak Mahindra Bank has been fined Rs. 1.05 crore for breaking the rules pertaining to the "Depositor Education and Awareness Fund Scheme, 2014" as well as for failing to follow instructions on "Customer Protection - Limiting Liability of Customers in Unauthorized Electronic Banking Transactions" and "Loans and Advances - Statutory and Other Restrictions," the banking regulator stated.


    Moreover, the RBI stated that  IndusInd Bank was fined Rs 1 crore for failing to follow certain Know Your Customer (KYC) regulations.


    Other cooperative banks that have received penalties include Nav Jeevan Co-operative Bank, Balangir District Central Cooperative Bank Limited, Balangir, Dhakuria Co-operative Bank Ltd, Kolkata, and The Palani Co-operative Urban Bank Limited (No. A.331), Palani.  The fine ranges between Rs 1 lakh and Rs 2 lakh.


    Further, the RBI clarified that the penalties are based on regulatory compliance issues and are not meant to question the legality of any transaction or arrangement made by the banks with their clients.


    Other cooperative banks that have received penalties include Nav Jeevan Co-operative Bank, Balangir District Central Cooperative Bank Limited, Balangir, Dhakuria Co-operative Bank Ltd, Kolkata, and The Palani Co-operative Urban Bank Limited (No. A.331), Palani.  The fine ranges between Rs 1 lakh and Rs 2 lakh.


    Further, the RBI clarified that the penalties are based on regulatory compliance issues and are not meant to question the legality of any transaction or arrangement made by the banks with their clients.