Reserve Bank imposed a penalty of ₹12.19 crore on ICICI Bank and ₹3.95 crore on Kotak Mahindra Bank for non-compliance with certain regulatory norms.
The penalty has been imposed on ICICI Bank for violation of norms relating to ‘Loans and Advances-Statutory and Other Restrictions’ and ‘Fraud Classification and Reporting by Commercial Banks and Select FLS’.
The penalty has been imposed on Kotak Mahindra Bank Limited for contravention of directions related to “Managing Risks and Code of Conduct in Outsourcing of Financial Services by Banks”, and “Recovery Agents engaged by Banks”.
It also includes violations of “Customer Service in Banks”, and “Loans and Advances – Statutory and Other Restrictions”.
In both cases, the RBI said the penalty was based on deficiencies in regulatory compliance.
It is not intended to affect the validity of any transaction or agreement entered into by banks with their customers.
