RBI slaps Rs 62 lakh fine on Kotak Mahindra Bank

The Reserve Bank on Friday said it has imposed a monetary penalty of Rs61.95 lakh on Kotak Mahindra Bank for non-compliance of norms related to Basic Savings Bank Deposit (BSBD) account, business correspondents and credit information companies. The penalty was imposed in an order dated December 11, 2025, the RBI said in a statement. According to the RBI, the fine was slapped for non-compliance with certain directions issued by the RBI on ‘Access to Banking Services — Basic Savings Bank Deposit Account’ and

‘Scope of activities to be undertaken of Business Correspondents (BCs)’ and contravention of provisions of Credit Information Companies Rules, 2006 (CIC Rules). The Statutory Inspection for Supervisory Evaluation (ISE 2024) of the bank was conducted by the RBI with reference to its financial position as on March 31, 2024, it said. During investigation, the RBI found that the bank opened another BSBD account of certain customers who already held such accounts with the bank.

Besides, the bank entered into an arrangement with business correspondents for undertaking activities, which are not covered within the scope of activities and the lender also furnished inaccurate information, in respect of certain borrowers, to credit information companies (CICs). After considering the bank’s reply to the notice and additional submissions made by it, RBI found, that the following charges against the bank were sustained, warranting imposition of monetary penalty, it said.