Home   »   Banking Current Affairs 2023   »   RBI imposes monetary penalty on IndusInd...

RBI imposes monetary penalty on IndusInd Bank, Kotak Mahindra Bank

RBI imposes monetary penalty on IndusInd Bank, Kotak Mahindra Bank_40.1

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1.05 crore and Rs 1 crore on Kotak Mahindra Bank and IndusInd Bank, respectively, for deficiencies in regulatory compliance. RBI’s these penalties are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

Buy Prime Test Series for all Banking, SSC, Insurance & other exams

In case of Kotak Mahindra Bank:

  • The RBI found that the private lender failed to maintain margin on advances to stock brokers; credit (shadow reversal) the amount involved in the unauthorised electronic transactions to the customers’ account within 10 working days from the date of notification by the customer; and credit eligible amount to the Depositor Education and Awareness Fund within the period prescribed.
  • This was found in a statutory inspection for supervisory evaluation of the bank conducted by RBI with reference to its financial positions as on March 31, 2018 and March 31, 2019.

As for IndusInd Bank:

  • The monetary penalty was imposed on it as it failed to adhere to customer due diligence procedure in the accounts opened using OTP based e-KYC, in non-face-to-face mode.

Find More Banking News Here

RBI imposes monetary penalty on IndusInd Bank, Kotak Mahindra Bank_50.1RBI imposes monetary penalty on IndusInd Bank, Kotak Mahindra Bank_60.1

Leave a comment

Your email address will not be published. Required fields are marked *