Case Brief
What Happened
The RBI imposed a monetary penalty of Rs 61.95 lakh on Kotak Mahindra Bank Limited by order dated December 11, 2025. The bank was found गैर-compliant with RBI directions on Basic Savings Bank Deposit Accounts and the scope of Business Correspondent activities, and also in contravention of the Credit Information Companies Rules, 2006. RBI cited three sustained charges: opening another BSBD account for customers already having one, entering into BC arrangements for activities outside the permitted scope, and furnishing inaccurate borrower information to Credit Information Companies. The penalty was imposed under the BR Act and the Credit Information Companies (Regulation) Act, 2005, and RBI clarified that the action is based on supervisory deficiencies and does not pronounce on the validity of any customer transaction.