RBI Banking Rules Violation:The Reserve Bank of India (RBI) has imposed a fine of Rs 61.95 lakh on Kotak Mahindra Bank for violation of banking rules. This information has been given by the Central Bank through an official order on Friday.
RBI has imposed this penalty due to negligence in the functioning of Kotak Mahindra Bank and ignoring the rules. Investigation found that many important rules were not followed by Kotak Mahindra Bank. In which Basic Savings Bank Deposit Account was opened for the customers. Those who already had this account. Which is against the rules.
outside financial transactions
The Central Bank’s investigation revealed that Kotak Mahindra Bank entered into such agreements with its Business Correspondents, which do not come under the jurisdiction of the bank. Besides, a case of the bank giving wrong information about some customers to the credit bureau has also come to light.
Which has a direct impact on the credit score of the customers. The Central Bank has taken a strict stance regarding these matters and has decided to impose a fine on the bank. The central bank has taken this decision after inspecting the financial position of Kotak Mahindra Bank till March 31, 2024. However, this action will not have any direct impact on the bank’s customers.
RBI said this
The central bank said through a release that this penalty imposed on the bank has been imposed under the powers of RBI. This action has been taken on the basis of relevant sections of the Banking Regulation Act and the provisions of the Credit Information Companies (Regulation) Act, 2005.
The Central Bank has also made it clear that this penalty has been imposed only for the shortcomings found in following the rules. RBI does not intend to raise any questions on the validity of any transaction or agreement entered into between the bank and its customers.
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