LI Network
Published on: October 18, 2023 at 11:35 IST
The Reserve Bank of India (RBI) has announced penalties against ICICI Bank and Kotak Mahindra Bank for non-compliance with specific regulatory norms. ICICI Bank has been penalized Rs 12.19 crore, while Kotak Mahindra Bank faces a penalty of Rs 3.95 crore.
ICICI Bank’s penalty is linked to contravention of regulations concerning ‘Loans and Advances – Statutory and Other restrictions’ and ‘Frauds classification and reporting by commercial banks and select Fls’.
Kotak Mahindra Bank Limited’s penalty, on the other hand, relates to violations of guidelines related to “Managing Risks and Code of Conduct in Outsourcing of Financial Services by banks,” “Recovery Agents engaged by Banks,” “Customer Service in Banks,” and “Loans and Advances – Statutory and Other Restrictions.”
RBI has clarified that the penalties are a result of regulatory compliance shortcomings and do not pass judgment on the validity of any transactions or agreements between the banks and their customers.