The Reserve Bank of India has fined Kotak Mahindra Bank over sixty-one lakh rupees for regulatory violations. The penalty addresses non-compliance with rules on basic savings accounts and business correspondent activities. The bank also contravened credit information reporting regulations.
A supervisory inspection found the bank had opened extra basic accounts for customers who already held one. Its arrangements with business correspondents involved unauthorized activities. Additionally, Kotak provided inaccurate borrower data to credit agencies.
The central bank clarified that this penalty focuses solely on compliance failures, not invalidating any customer transactions. The action does not prevent further potential measures against the bank.
A supervisory inspection found the bank had opened extra basic accounts for customers who already held one. Its arrangements with business correspondents involved unauthorized activities. Additionally, Kotak provided inaccurate borrower data to credit agencies.
The central bank clarified that this penalty focuses solely on compliance failures, not invalidating any customer transactions. The action does not prevent further potential measures against the bank.
