The banking regulator Reserve Bank of India (RBI) has imposed a monetary penalty on IndusInd Bank and Kotak Mahindra Bank for contravention / non-compliance with the provisions of the Act and the directions issued by RBI
RBI has imposed a monetary penalty of Rs 1 crore on IndusInd Bank. for non-compliance with certain directions issued by RBI regarding Know Your Customer (KYC)) Directions, 2016.
Further, it has imposed a monetary penalty of Rs 1,05,00,000 on Kotak Mahindra Bank 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’.
However, the 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.