Case Brief
What Happened
By an order dated June 06, 2019, RBI imposed a monetary penalty of ₹20 million on Kotak Mahindra Bank Limited for non-compliance with directions issued under Sections 27(2) and 35A of the Banking Regulation Act, 1949. The bank was asked to furnish information on promoter shareholding and submit its proposed plan/strategy for complying with the permitted timeline for dilution of promoter shareholding, and later to convey its commitment to achieve the dilution within the stipulated timeline. After a show-cause notice, reply, personal hearing, and review of documents, RBI concluded that the bank had failed to comply and imposed the penalty under Section 47A(1)(c) read with Section 46(4)(i).