Kotak Mahindra Bank may be held responsible for non-compliance with the penalty banking regulation act1949 and Directives on ‘Customer Protection – Limited Liability of Customers in Unauthorized Electronic Banking Transactions’, and ‘Loans and Advances – Statutory and Other Restrictions’.
Meanwhile, IndusInd Bank has also been fined Rs 1 crore for non-compliance with Know Your Customer (KYC) norms.
Apart from this, RBI has also imposed penalty on four co-operative banks.
Nav Jeevan Sahakari Bank has also been fined; Balangir District Central Co-operative Bank Ltd., Balangir; Dhakuria Cooperative Bank Ltd., Kolkata; and Palani Co-Operative Urban Bank Ltd. (No.A.331), Palani.
The fine ranges between Rs 1 lakh to Rs 2 lakh.
RBI, however, said the penalty is based on deficiencies in regulatory compliance and is not intended to impinge on the validity of any transaction or agreement entered into by banks with their customers.
(with inputs from PTI)