RBI slaps fine on Kotak and IndusInd banks
RBI slaps fine on Kotak and IndusInd banks
The two were accused of non-compliance with the regulatory body's guidelines
The Reserve Bank of India (RBI) has penalized private-sector lenders Kotak Mahindra Bank and IndusInd Bank for failing to comply with regulatory guidelines.
The banking regulator has imposed a penalty of Rs.1.05 crores on Kotak for contravention of provisions under the Banking Regulation Act, read with the Depositor Education and Awareness Fund Scheme.
The RBI stated, "The examination of the risk assessment reports, inspection reports, and all related correspondence pertaining to the same, revealed, inter alia, contravention of the provisions of the Act and the directions issued by RBI."
IndusInd Bank was fined Rs.1 crore. The banking regulator held, "A statutory inspection for supervisory evaluation was conducted with reference to its financial position as of 31 March 2020. An examination of the risk assessment and inspection report revealed non-compliance with RBI's directions."
RBI maintained that the bank failed to adhere to the customer due diligence procedure in accounts opened using OTP-based e-KYC. In some accounts, the aggregate of credits in a fiscal year in deposits surpassed the Rs.2 lakh threshold.
