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RBI imposes heavy fine on two big banks for violating rules

RBI Imposes Heavy Fine on Two Big Banks for Violating Rules

The Reserve Bank of India (RBI) has imposed heavy fines on two big private sector banks. This action has been taken due to non-compliance of the guidelines. This fine has been imposed by the central bank on the country’s two big banks, Kotak Mahindra Bank and IndusInd Bank. A penalty of Rs 1.05 crore has been imposed on Kotak Mahindra Bank and Rs 1 crore on IndusInd Bank.

IndusInd Bank has been fined Rs 1 crore by the Securities and Exchange Board of India. SEBI has said that IndusInd Bank did not comply with the ‘Know Your Customer’ (KYC) norms, due to which this bank has been fined.

RBI says that on June 29, 2022, the bank’s rules were violated and customer protection guidelines were also violated, due to which a penalty of Rs 1.05 crore was imposed on Kotak Mahindra Bank.

Apart from this, RBI has imposed penalty on four more cooperative sector banks. These co-operative banks – Palani Cooperative Urban Bank Ltd., Balangir District Central Co-operative Bank Ltd., Dhakuria Co-operative Bank Ltd. Kolkata and Navjeevan Co-operative Bank have been fined between Rs 1 lakh to Rs 2 lakh.

The Reserve Bank said that the decision to impose the penalty is based on lapse in regulatory compliance and does not raise any question on the validity of any transaction or agreement of banks with their customers.