RBI imposes Rs 2 crore penalty on Kotak Mahindra Bank

RBI imposes Rs 2 crore penalty on Kotak Mahindra Bank

• The Reserve Bank of India has imposed a monetary penalty of Rs 2 Crore on Kotak Mahindra Bank Limited for non-compliance to RBI’s guidelines on promoter shareholding. 
• The bank was directed by RBI to furnish information about details of the shareholding held by its promoters and to submit details of the proposed course of action/plans/strategy of the bank for complying with the permitted timeline for dilution of promoter shareholding. 
• After considering the reply received from the bank, submissions made by the bank during the personal hearing and the documents submitted by it, RBI came to the conclusion that the bank had failed to comply with the directions issued by RBI and decided to impose monetary penalty on the bank.

Points to remember:

1. The Reserve Bank of India has imposed a penalty of Rs 20 million on which bank for non-compliance to RBI’s guidelines on promoter shareholding?
2. Amount of penalty on Kotak Mahindra Bank by RBI or non-compliance to RBI’s guidelines on promoter shareholding?