The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹61.95 lakh on Kotak Mahindra Bank for non-compliance with regulatory provisions related to credit information reporting.
The penalty was levied for violations of the Credit Information Companies Rules, 2006 and related directions issued by the RBI. The non-compliance was identified during the central bank’s statutory inspection of the bank for the financial year ended March 31, 2024.
According to the RBI, the action has been taken under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, as well as Section 25(1)(iii) read with Section 23(4) of the Credit Information Companies Act, 2005.
The RBI clarified that the penalty is based on regulatory deficiencies and does not impact the validity of any transactions or agreements entered into by the bank with its customers.
Kotak Mahindra Bank has acknowledged the RBI’s order and stated that it is taking necessary measures to strengthen compliance and internal control mechanisms.
The move is part of the RBI’s ongoing efforts to ensure strict adherence to regulatory norms across the banking system.
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