The Reserve Bank of India (RBI) announced on Tuesday that it has taken punitive action against ICICI Bank and Kotak Mahindra Bank, imposing fines of Rs 12.19 crore and Rs 3.95 crore respectively. These penalties have been levied due to the banks’ failure to comply with specific regulatory guidelines.
ICICI Bank, a prominent private sector lender, faces penalties for its breach of regulations pertaining to ‘Loans and Advances-Statutory and Other restrictions’ as well as ‘Frauds classification and reporting by commercial banks and select Financial Institutions (Fls)’.
Meanwhile, Kotak Mahindra Bank Limited is being penalized for non-compliance with directives concerning ‘Managing Risks and Code of Conduct in Outsourcing of Financial Services by banks’ and ‘Recovery Agents engaged by banks’.
The RBI’s assertive action reinforces the significance of strict adherence to regulatory norms within the banking sector. Both ICICI Bank and Kotak Mahindra are expected to promptly address the issues and ensure comprehensive compliance to prevent any further breaches in the future. This development serves as a stark reminder to all financial institutions to uphold the highest standards of regulatory compliance and governance.