RBI penalises Kotak Mahindra Bank for Rs 2 crore

RBI penalises Kotak Mahindra Bank for Rs 2 crore

Mumbai, The Reserve Bank of India (RBI) imposed a monetary penalty of Rs two crore on Kotak Mahindra Bank Limited for non-compliance, with the directions issued to the bank by RBI in exercise of its powers under Sections 27(2) and 35A of the Banking Regulation Act, 1949 (the Act), to furnish information specified therein. This penalty has been imposed, in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Act, taking into account the default committed by the bank in complying with the aforesaid directions issued by RBI. This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank, an RBI statement said here. The penalty is for failure to comply with the RBI's directions to submit details of the promoter shareholding, the proposed course of action/plans/strategy by the Bank, and not conveying the commitment of the Bank for achieving promoter dilution, as per the timelines stipulated, it added.

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