The Reserve Bank of India has taken action against ICICI and Kotak Mahindra Bank for not following regulatory rules. The Reserve Bank of India (RBI) said on Tuesday that it has imposed a fine of Rs 12.19 crore on ICICI Bank and Rs 3.95 crore on Kotak Mahindra Bank.
The Central Bank gave these reasons for taking action
The penalty has been imposed on private sector ICICI Bank for violation of norms relating to 'Loans and Advances - Statutory and Other Restrictions' and 'Fraud Classification and Reporting by Commercial Banks and Select Financial Institutions'.
Fines imposed due to irregularities in regulatory compliance
In another statement, the Reserve Bank said the penalty on Kotak Mahindra Bank Ltd was imposed on 'risk management and code of conduct in outsourcing of financial services by banks', 'recovery agents engaged by banks', 'customer service in banks' and 'credit and Advance - imposed for violation of instructions relating to 'statutory and other restrictions'. The RBI said the penalties in both cases are based on deficiencies in regulatory compliance. It is not intended to call into question the validity of any transaction or agreement entered into by banks with their customers.