Big action by RBI! A fine of 62 lakh rupees was imposed on ‘Ya’ the legendary private bank, what will be the effect on the customers

• A major action by RBI Bank
• Penalty imposed on Kotak Mahindra Bank
• A whopping Rs 62 lakh fine, what is the reason?

Reserve Bank of India (RBI) is the central bank of the country. All private and public banks work under RBI and follow its regulations. If a bank fails to comply with these norms, RBI takes action against that bank and imposes penalty. Now, the RBI has taken action against one of the largest and leading private banks in the country, imposing a fine on it.

Now you may be wondering that exactly which bank is this? So this bank is Kotak Mahindra Bank. If you have a bank account with Kotak Mahindra Bank then this news will be very important for you. Let us learn more about what exactly happened from this article.

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RBI action against Kotak Mahindra Bank

RBI has imposed a penalty of ₹61.95 lakh (approximately ₹62 lakh) on Kotak Mahindra Bank. The RBI has imposed this penalty due to the bank’s failure to comply with the norms. RBI has said that banking The bank’s failure to comply with norms related to services, Basic Savings Bank Deposit Accounts, Business Correspondents and Credit Information Companies Rules 2006 has resulted in a fine of ₹61.95 lakh.

It may be noted that in March 2024, the RBI conducted Statutory Monitoring and Evaluation of Financial Health of Kotak Mahindra Bank (ISE 2024), which found that the bank had opened additional BSBD accounts for some customers who already had such accounts. In addition, the bank had misrepresented some borrowers to credit reporting companies.

Financial transactions outside the scope of the bank

The central bank’s inquiry revealed that Kotak Mahindra Bank entered into agreements with its business representatives that fell outside the bank’s jurisdiction. In addition, the bank also reported providing false information to credit bureaus about some customers.

This directly affects the customer’s credit score. Taking a strict stance on these matters, the central bank has decided to impose a penalty on the bank. The central bank took this decision after reviewing the financial position of Kotak Mahindra Bank as on 31 March 2024. However, this action will not have any direct impact on the bank’s customers.

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What does the RBI have to say?

The central bank said in a press release that the penalty imposed on the bank was imposed under the powers of the RBI. This action is taken based on the relevant sections of the Banking Regulation Act and the provisions of the Credit Information Companies (Regulation) Act, 2005.

The central bank also clarified that these penalties are only based on lapses in compliance. RBI does not intend to question the validity of any transactions or contracts between the Bank and its customers.

Will there be any impact on consumers?

RBI has imposed a penalty of approximately ₹62 lakh on Kotak Mahindra Bank and has taken action against the bank. Consumers are worried about whether this will cause any problems. However, we assure you that the bank’s customers will not face any problem. In such a case, if your bank account is with Kotak Mahindra Bank then there is no reason to worry.