RBI fines Kotak Mahindra Bank and Indusind Bank
On Kotak Mahindra Bank, RBI has imposed a penalty of Rs1.05 crore for contravention of the provisions of sub-section (2) of Section 26A of the Banking Regulation Act
PremiumMUMBAI : The Reserve Bank of India (RBI) on Monday said it has penalized private sector lenders Kotak Mahindra Bank and Indusind Bank for failing to comply with certain regulatory guidelines.
On Kotak Mahindra Bank, RBI has imposed a penalty of ₹1.05 crore for contravention of the provisions of sub-section (2) of Section 26A of the Banking Regulation Act, read with paragraph 3 of The Depositor Education and Awareness Fund Scheme.
RBI said that a statutory inspection for supervisory evaluation of the bank was conducted with reference to its financial positions as on 31 March 2018 and 31 March 2019.
“The examination of the Risk Assessment Reports, Inspection Reports and all related correspondence pertaining to the same, revealed, inter alia, contravention of...provisions of the Act and the directions issued by RBI..." it said.
Kotak Mahindra Bank, RBI said, failed to credit the eligible amount to the Depositor Education and Awareness Fund within the period prescribed; credit the amount involved in the unauthorized electronic transactions to the customers’ account within 10 working days from the date of notification by the customer.
For Indusind Bank, fined ₹1 crore, the regulator said that a statutory inspection for supervisory evaluation was conducted with reference to its financial position as on 31 March 2020. An examination of the risk assessment report, inspection report revealed non-compliance with the directions issued by RBI.
It said that the bank failed to adhere to Customer Due Diligence (CDD) procedure in the accounts opened using OTP based e-KYC, in non-face-to-face mode, as in certain accounts, the aggregate of all credits in a financial year, in all the deposits taken together, exceeded the prescribed threshold of ₹2 lakh.
"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!
