The Reserve Bank of India (RBI) on Monday imposed a financial penalty of Rs 1.05 crore and Rs 1 crore on Kotak Mahindra Bank and IndusInd Bank, respectively, for deficiencies in regulatory compliance.
In case of Kotak Mahindra Bank, the RBI discovered that the non-public lender didn’t deal with margin on advances to inventory agents; credit score (shadow reversal) the volume concerned within the unauthorised digital transactions to the shoppers’ account inside 10 running days from the date of notification by way of the buyer; and credit score eligible quantity to the Depositor Schooling and Consciousness Fund inside the length prescribed. This was once present in a statutory inspection for supervisory analysis of the financial institution performed by way of RBI as regards to its monetary positions as on March 31, 2018 and March 31, 2019.
As for IndusInd Bank, the financial penalty was once imposed on it because it failed to stick to buyer due diligence process within the accounts opened the use of OTP primarily based e-KYC, in non-face-to-face mode.
Disclosure: Entities managed by way of the Kotak circle of relatives have an important protecting in Industry Same old Pvt Ltd.