RBI Fines Kotak Mahindra Bank Rs 62 Lakh for Regulatory Breaches

• The Reserve Bank of India (RBI) imposed a monetary penalty of Rs 61.95 lakh on Kotak Mahindra Bank.
• The penalty is for non-compliance with regulatory norms on Basic Savings Bank Deposit (BSBD) accounts, business correspondents, and credit information companies.
• Lapses were identified during the Statutory Inspection for Supervisory Evaluation (ISE 2024) with reference to the bank’s financial position as on March 31, 2024.
• The bank opened multiple BSBD accounts for certain customers and engaged business correspondents beyond their permitted scope.
• Kotak Mahindra Bank also furnished inaccurate information on certain borrowers to credit information companies.

Why It Matters: RBI fined Kotak Mahindra Bank for compliance deficiencies, not questioning customer transactions.