The Reserve Bank of India (RBI) has fined private sector lenders Kotak Mahindra Bank and Indusind Bank for failing to comply with certain regulatory guidelines. 

The central bank has also imposed penalties on four co-operative banks.

A penalty of Rs 1.05 crore has been imposed on Kotak Mahindra Bank for contravention of certain norms related to ‘The Depositor Education and Awareness Fund Scheme, 2014’ and for non-compliance with the directions on ‘Customer Protection – Limiting Liability of Customers in Unauthorised Electronic Banking Transactions’, and ‘Loans and Advances – Statutory and Other Restrictions’, the banking regulator said.

The RBI had conducted a statutory inspection for supervisory evaluation of the bank with reference to its financial positions as on 31 March 2018 and 31 March 2019. 

Kotak Mahindra Bank, RBI said, failed to credit the eligible amount to the Depositor Education and Awareness Fund within the period prescribed; credit the amount involved in the unauthorised electronic transactions to the customers’ account within 10 working days from the date of notification by the customer.

The RBI said a penalty of Rs 1 crore has been imposed on IndusInd Bank for non-compliance with certain Know Your Customer (KYC) norms.

The RBI had conducted a statutory inspection for supervisory evaluation with reference to its financial position as on 31 March 2020. 

RBI said IndusInd Bank failed to adhere to Customer Due Diligence (CDD) procedure in the accounts opened using OTP based e-KYC, in non-face-to-face mode, as in certain accounts, the aggregate of all credits in a financial year, in all the deposits taken together, exceeded the prescribed threshold of Rs 2 lakh.

The RBI has also imposed penalties on Nav Jeevan Co-operative Bank, Balangir District Central Cooperative Bank, Balangir, Dhakuria Cooperative Bank Ltd, Kolkata and The Palani Co-operative Urban Bank (No. A.331), Palani. The penalty ranges between Rs 1 lakh and Rs 2 lakh.