The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹61.95 lakh (Rupees Sixty One Lakh Ninety Five Thousand only) on Kotak Mahindra Bank Limited (the bank) for non-compliance with certain directions issued by RBI on ‘Access to Banking Services – Basic Savings Bank Deposit Account’ and ‘Scope of activities to be undertaken of Business Correspondents (BCs)’ and contravention of provisions of Credit lnformation Companies Rules, 2006 (ClC Rules).
The monetary penalty was imposed because:
- The bank opened another BSBD account of certain customers who were already holding BSBD account in the bank;
- The bank entered into an arrangement with BCs for undertaking activities, which are not covered within the scope of activities that can be undertaken by BCs; and
- The bank furnished inaccurate information, in respect of certain borrowers, to Credit Information Companies (CICs).
The RBI asked the bank to explain the reason for non-compliance. Unsatisfied with the reply, RBI imposed monetary penalty on the bank.
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