Strict action of RBI, fine of crores imposed on these 2 big banks; Don't you have an account?

Amit Kumar Jha

The RBI has imposed a fine of one crore each on two big banks Kotak Mahindra Bank and IndusInd Bank for non-compliance with the rules.

Major action has been taken by the Reserve Bank of India (RBI) against two big banks of the country. On Monday, RBI said that Kotak Mahindra Bank and IndusInd Bank (Kotak Mahindra Bank & Indusind Bank) have been fined about Rs 1 crore each for non-compliance in regulatory compliance.

Penalty imposed for non -compliance of provisions The

RBI has also decided to impose penalty on four co-operative banks as well. The Reserve Bank of India (RBI) said that a fine 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.

While four cooperative banks were also fined

, SEBI has imposed a fine of Rs 1 crore on IndusInd Bank for not following the 'Know Your Customer' (KYC) norms. Apart from this, the RBI has also imposed a fine on four banks in the cooperative sector - 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 all these co-operative banks. The Reserve Bank, however, said that the decision to impose the penalty is based on lapses in regulatory compliance and does not question the validity of any transaction or agreement of banks with their customers.