RBI fines Kotak, Induslnd banks Rs. 1 crore each

RBI has imposed fines on Kotak Bank and IndusInd Bank for irregularities. Kotak Bank has been fined Rs 1.05 crore for failing to transfer unclaimed money to the depositor education and awareness fund, reversing unauthorised electronic transfers in time and not maintaining margins on advances to brokers.

The Rs 1-crore fine on IndusInd Bank is for not doing due diligence in accounts opened using OTP-based e-KYC, in a non-face-to-face mode where required. Banks are required to transfer unclaimed deposits, if there is no customer-initiated transaction for 10 years, into the Depositor Education and Awareness Fund.

Besides the two private banks, the central bank has also penalised some co-operative banks — Nav Jeevan Co-operative Bank, Balangir District Central Cooperative Bank (Balangir), Dhakuria Cooperative Bank (Kolkata), and The Palani Co-operative Urban Bank (Palani). The penalty ranges between Rs 1 lakh and Rs 2 lakh.