RBI Imposes Penalty On IndusInd Bank, Karnataka Bank Of Around Rs. 1 Crore

On Monday, the apex banker RBI said that it has levied penalties amounting to around Rs. 1 crore each for not meeting regulatory compliances completely.

Other than this the apex bank has imposed penalty on 4 other cooperative banks.

On the private sector lender Kotak Mahindra Bank, the bank has imposed a penalty amounting to Rs. 1.05 crore for contravention of the provisions of sub-section (2) of Section 26A of the Banking Regulation Act, 1949 (the Act) read with paragraph 3 of 'The Depositor Education and Awareness Fund Scheme, 2014' and for non-compliance with the directions on 'Customer Protection - Limiting Liability of Customers in Unauthorised Electronic Banking Transactions', and 'Loans and Advances - Statutory and Other Restrictions'.

On IndusInd Bank the penalty charged is Rs. 1 crore for non-compliance with certain directions issued by RBI on 'Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016'. "This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers",said the RBI.

Besides penalty has been charged to cooperative banks namely Nav Jeevan Co-operative Bank; Balangir District Central Cooperative Bank, Dhakuria Cooperative Bank Ltd, Kolkata; and The Palani Co-operative Urban Bank Ltd.