The Reserve Bank of India (RBI) on Tuesday said it has imposed a heavy penalty on ICICI Bank and Kotak Mahindra Bank for non-compliance of certain regulatory norms. The Reserve Bank of India (RBI) has imposed a penalty of Rs 12.19 crore and Rs 395 crore on ICICI Bank and Kotak Mahindra Bank, respectively. The RBI said the penalty in both cases was based on regulatory compliance deficiencies.

Business Desk, New Delhi. The Reserve Bank of India (RBI) on Tuesday said it has imposed a heavy penalty on ICICI Bank and Kotak Mahindra Bank for non-compliance of certain regulatory norms. For both the banks, the RBI said the penalty was based on regulatory compliance deficiencies and was not intended to affect the validity of any transaction or agreement entered into by the banks with their customers.

Reserve Bank of India (RBI) imposed a fine of Rs 121.9 crore on ICICI Bank Ltd for violations and non-compliance with RBI directions on “Classification and reporting of frauds by commercial banks and selected FLS”: RBI pic.twitter. com/nZeI174wrW

Fine on ICICI Bank, Kotak Mahindra Bank

The Reserve Bank of India (RBI) has imposed a penalty of Rs 12.19 crore and Rs 395 crore on ICICI Bank and Kotak Mahindra Bank, respectively. Private sector lender ICICI Bank has been slapped with statutory and other sanctions for violation of norms relating to classification and reporting of loans and advances and frauds by commercial banks and specific FLSs.

Reserve Bank of India (RBI) imposed a fine of Rs 395 crore on Kotak Mahindra Bank Ltd for non-compliance of RBI directions: RBI pic.twitter.com/ngFQrOzhb9

What did the Reserve Bank of India say?

Apart from this, RBI said in a separate statement that Kotak Mahindra Bank Limited has been penalized for violation of instructions related to risk management and code of conduct for banks, designated recovery agents of banks and customer service outsourcing financial services. The RBI said the penalties imposed in both the cases were based on regulatory compliance deficiencies and were not intended to affect the validity of any transaction or agreement entered into by the bank with its customers.