RBI imposes penalty on Kotak Mahindra Bank, IndusInd Bank
Highlight
- RBI has also imposed penalty on four co-operative banks
- Kotak Mahindra Bank has been penalized for violation of certain norms
- IndusInd Bank penalized for non-compliance with certain KYC norms
The RBI on Monday said it has imposed a penalty of around Rs 1 crore on Kotak Mahindra Bank and IndusInd Bank for deficiencies in regulatory compliance. Apart from this, RBI has also imposed penalty on four co-operative banks.
Kotak Mahindra Bank has been fined Rs 1.05 crore for violation of certain norms relating to ‘The Depositor Education and Awareness Fund Scheme, 2014’ and non-compliance of the directions on ‘Customer Protection-Limited Liability of Customers in Unauthorized’. electronic banking transactions’, and ‘loans and advances – statutory and other restrictions’, the banking regulator said.
RBI said that IndusInd Bank has been fined Rs 1 crore for non-compliance of Know Your Customer (KYC) norms.
Nav Jeevan Sahakari Bank has also been fined; Balangir District Central Co-operative Bank Ltd., Balangir; Dhakuria Cooperative Bank Ltd., Kolkata; and Palani Co-Operative Urban Bank Limited (No.A.331), Palani.
The fine ranges between Rs 1 lakh to Rs 2 lakh.
RBI, however, said the penalty is based on deficiencies in regulatory compliance and is not intended to impinge on the validity of any transaction or agreement entered into by banks with their customers.
(with inputs from PTI)
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