RBI imposes penalty on ICICI Bank, Kotak Mahindra Bank for violation of norms

Mumbai: The Reserve Bank on Tuesday said it has imposed a penalty or Rs 12.19 crore on ICICI Bank and Rs 3.95 crore on Kotak Mahindra Bank for non-compliance of certain regulatory norms.

The penalty on private sector lender ICICI Bank has been imposed for contravention of norms related to 'Loans and Advances-Statutory and Other restrictions' and 'Frauds classification and reporting by commercial banks and select Fls'.

In another statement, the RBI said the penalty on Kotak Mahindra Bank Limited has been imposed for contravention of directions related to 'Managing Risks and Code of Conduct in Outsourcing of Financial Services by banks', 'Recovery Agents engaged by Banks', 'Customer Service in Banks', and 'Loans and Advances - Statutory and Other Restrictions'.

In both cases, the RBI said the penalties are 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 banks with their customers.