Kotak Mahindra Bank Limited

RBI imposed a penalty of Rs 61.95 lakh on Kotak Mahindra Bank Limited for regulatory non-compliance. The violations related to BSBD account rules, Business Correspondent activity limits, and inaccurate reporting to credit information companies.

Kotak Mahindra Bank must absorb the monetary penalty and address the compliance gaps identified by RBI. The findings also indicate continuing supervisory scrutiny over account-opening practices, BC outsourcing arrangements, and reporting accuracy to credit bureaus/CICs; RBI may initiate further action if warranted.

• section 47A(1)(c) read with section 46(4)(i) of the BR Act
• section 25(1)(iii) read with section 23(4) of the Credit Information Companies (Regulation) Act, 2005

RBI imposed a monetary penalty of Rs 61.40 lakh on Kotak Mahindra Bank Limited. The action followed findings of non-compliance with RBI directions on bank credit delivery and restrictions on loans and advances.

Kotak Mahindra Bank must absorb the monetary penalty and remain exposed to any further supervisory or enforcement action RBI may decide to initiate. The order does not invalidate customer transactions, but it signals continuing compliance scrutiny over the bank’s lending practices and margin requirements for affected borrower and broker exposures.

• Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949

RBI has lifted the business restrictions earlier imposed on Kotak Mahindra Bank Limited. The bank had remedied the supervisory concerns and submitted compliances, supported by an external audit.

Kotak Mahindra Bank is no longer constrained by the earlier onboarding and credit-card issuance restrictions. The bank can resume the affected activities, and the release does not impose any new compliance burden beyond the bank’s normal regulatory obligations.

• Section 35A of the Banking Regulation Act, 1949

RBI imposed Section 35A business restrictions on Kotak Mahindra Bank Limited. The bank must stop new customer onboarding via digital channels and issuing fresh credit cards, while continuing services to existing customers.

With immediate effect, Kotak Mahindra Bank Limited cannot onboard new customers via online/mobile channels or issue fresh credit cards. Existing customers, including existing credit card customers, may continue to be served. The restrictions remain until RBI reviews the outcome of an RBI-approved external audit and the bank remedies all identified deficiencies to RBI’s satisfaction.

• Section 35A of the Banking Regulation Act, 1949

RBI imposed a ₹3.95 crore penalty on Kotak Mahindra Bank Limited for multiple non-compliances with banking directions. The violations related to outsourcing oversight, recovery agent conduct, customer service, and loan/advance practices.

Kotak Mahindra Bank must absorb the penalty and address the compliance failures identified by RBI, including outsourcing oversight, recovery-agent practices, customer-contact timing, and loan pricing/foreclosure charge processes. The action does not by itself impose a new operating restriction, but it signals supervisory concerns and may trigger tighter internal controls and remediation obligations.

• Section 47A(1)(c) read with Sections 46 (4)(i) of the Banking Regulation Act, 1949

RBI imposed a penalty of Rs 1.05 crore on Kotak Mahindra Bank Limited for multiple compliance lapses. The breaches involved depositor fund remittance, unauthorised electronic transaction handling, and margin requirements on stock broker advances.

Kotak Mahindra Bank must absorb the financial penalty and address the compliance gaps identified by RBI. The underlying obligations concern timely transfer of eligible amounts to the Depositor Education and Awareness Fund, prompt customer compensation for unauthorised electronic transactions, and adherence to margin requirements on stock broker advances; affected parties include the bank and its customers.

• sub-section (2) of Section 26A of the Banking Regulation Act, 1949
• paragraph 3 of ‘The Depositor Education and Awareness Fund Scheme, 2014’
• section 47 A (1) (c) read with sections 46 (4) (i) of the Act

RBI imposed a ₹20 million penalty on Kotak Mahindra Bank Limited for non-compliance with directions to furnish specified information and shareholding-dilution plans. The bank had failed to comply with RBI's earlier instructions on promoter shareholding dilution.

Kotak Mahindra Bank Limited must absorb the monetary penalty; the release does not impose a new operational restriction, but it underscores RBI's enforcement position on compliance with reporting and promoter-shareholding dilution directions. No direct forward-looking customer restriction is stated in this release.

• sections 27(2) and 35A of the Banking Regulation Act, 1949
• Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949

RBI imposed monetary penalties on HDFC Bank, IDBI Bank, and Kotak Mahindra Bank. The penalties were for non-compliance with KYC/AML directions.

Each of the three banks must absorb the monetary penalty and address the compliance deficiencies that led to the action. The release does not impose an operational restriction, but it signals regulatory scrutiny over KYC/AML controls and related compliance processes.

• Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949

This RBI action affected 3 entities. This profile is linked as bulk member.

RBI imposed monetary penalties on two authorised dealer banks for FEMA reporting requirement violations. The named banks are The Hongkong and Shanghai Banking Corporation Ltd. and Kotak Mahindra Bank.

Both banks must absorb the monetary penalties and continue complying with RBI/FEMA reporting instructions. The order does not describe any operational restriction beyond the fines, but it signals regulatory non-compliance in reporting obligations.

• section 11(3) of FEMA 1999

This RBI action affected 2 entities. This profile is linked as bulk member.

RBI imposed monetary penalties on 13 banks for KYC/AML and related regulatory violations. The scrutiny also found issues around account monitoring, STR filing, and FEMA-related compliance.

The penalised banks must absorb the monetary penalties and address the compliance gaps identified by the RBI, particularly around KYC, transaction monitoring, STR reporting, and FEMA-related controls. The eight other banks named in the release were not penalised, but were advised to strengthen measures and periodically review compliance processes on an ongoing basis.

• Section 47(A) (1) (c) read with Section 46(4)(i) of the Banking Regulation Act, 1949

This RBI action affected 21 entities. This profile is linked as bulk member.

RBI imposed penalties on 12 banks in connection with scrutiny of accounts related to M/s. Deccan Chronicle Holdings Ltd. The banks were found to have violated RBI instructions/directions/guidelines.

Each named bank must bear the imposed penalty; there is no indication of an operational restriction or cancellation. The action signals regulatory non-compliance tied to lending/account handling in relation to the borrower, but the release says it does not determine the validity of any transaction or agreement between the banks and the borrower.

• Section 47A(1) read with Section 46(4)(i) of the Banking Regulation Act, 1949

This RBI action affected 12 entities. This profile is linked as bulk member.

RBI imposed monetary penalties on 22 banks for various KYC/AML and related compliance violations. The release also says seven other banks were only cautioned, not fined.

Each of the 22 named banks must bear the monetary penalty and face the compliance finding recorded by RBI. The action does not impose an ongoing operational restriction, but it signals supervisory concerns over KYC/AML and transaction-monitoring controls.

• Section 47(A)(1)(c) of the Banking Regulation Act, 1949
• Section 46(4)(i) of the Banking Regulation Act, 1949

This RBI action affected 22 entities. This profile is linked as bulk member.

RBI imposed monetary penalties on 19 commercial banks for violating its derivatives-related instructions. The banks were found to have failed on due diligence, suitability checks, and related verification requirements.

Each of the 19 named banks must absorb the monetary penalty and address the compliance gaps identified by RBI. The action does not impose an ongoing operational restriction, but it signals scrutiny over derivatives sales, suitability checks, and underlying verification controls.

• Section 47A(1)(b) read with Section 46(4)(i) of the Banking Regulation Act, 1949

This RBI action affected 19 entities. This profile is linked as bulk member.