Case Brief
What Happened
By an order dated April 11, 2025, RBI imposed a monetary penalty of Rs 61.40 lakh on Kotak Mahindra Bank Limited. The penalty followed an inspection for supervisory evaluation and subsequent show-cause proceedings that found the bank had not complied with RBI directions relating to the loan system for delivery of bank credit and to statutory and other restrictions on loans and advances. RBI cited two sustained charges: the bank failed to ensure the outstanding loan component met the required percentage of the sanctioned fund-based working capital limit for certain borrowers, and it did not comply with margin requirements for intra-day limits to certain stock-brokers. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.