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RBI Imposes Fine On Kotak Mahindra, Induslnd Bank Of Rs 1 Cr Each

The central bank has also decided to impose penalty on four co-operative banks

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The Reserve Bank of India (RBI) on Monday said it has imposed a penalty of about Rs 1 crore each on Kotak Mahindra Bank and IndusInd Bank for lax regulatory compliance. Along with this, the central bank has also decided to impose penalty on four co-operative banks.

The Reserve Bank said that a penalty of Rs 1.05 crore has been imposed on Kotak Mahindra Bank. The penalty has been imposed for violation of certain norms of 'Depositor Education and Awareness Fund Scheme, 2014' and non-compliance of provisions relating to consumer protection and loans and advances in unauthorized electronic banking transactions. At the same time, SEBI has imposed a penalty of Rs 1 crore on IndusInd Bank for non-compliance of 'Know Your Customer' (KYC) norms.

Apart from this, RBI has also imposed penalty on four cooperative sector banks – Navjeevan Cooperative Bank, Balangir District Central Co-operative Bank Ltd., Dhakuria Co-operative Bank Ltd Kolkata and Palani Co-operative Urban Bank Ltd. Fines ranging from one lakh to two lakh rupees have been imposed on them. The Reserve Bank, however, said that the decision to impose the penalty is based on lapses in regulatory compliance and does not call into question the validity of any transaction or agreement of banks with their customers.