Kotak Mahindra Bank was penalized for neglecting to conduct an annual review or due diligence of its service provider, as well as for breaching contact hour regulations with customers.
The bank received criticism for charging interest from the disbursement due date instead of the actual disbursement date, which goes against the terms of sanction. The central bank stated these findings in a formal announcement.
The bank was found to be promoting and selling non-financial products, while displaying a careless approach towards reporting fraudulent activities to the RBI within the designated timeframe.
As per the RBI, ICICI Bank was fined for violating sub-section (1) of Section 20 of the Banking Regulation Act, 1949 (BR Act), which was imposed in combination with the RBI's guidelines on 'Loans and Advances-Statutory and Other limitations'.
As per the RBI, ICICI Bank was fined for violating sub-section (1) of Section 20 of the Banking Regulation Act, 1949 (BR Act), which was imposed in combination with the RBI's guidelines on 'Loans and Advances-Statutory and Other limitations'.
The Reserve Bank of India (RBI) has announced that Kotak Mahindra Bank has been penalized for failing to comply with official directives regarding "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".