The Reserve Bank of India (RBI) on 17 October 2023 fined ICICI Bank and Kotak Mahindra Bank for non compliance with the regulatory provisions.
The ICICI bank has been fined Rs 12.19 crore by the RBI for violating various rules . It was found guilty of providing loans to companies where two of its directors sat on the board. The bank was also found guilty of marketing and selling non-financial products and showed a negligent attitude towards reporting fraud to the RBI within the prescribed timeline.
The Kotak Mahindra Bank was fined Rs 3.95 crore for failing to conduct an annual review or due diligence of its service provider and for violation of contact hours with customers.
The Banking Regulation Acts (BRA) 1949 makes RBI the regulator of banks in India. Under the BRA Act 1949, if the banks do not follow the rules and regulations of the RBI, the RBI has the power to impose a penalty on the banks.
ICICI Bank was set up by ICICI in 1994 as a private sector bank.
The ICICI merged with ICICI Bank in 2002.
ICICI Bank is the second largest private bank in India after HDFC Bank.
Managing Director and Chief Executive Officer: Sandeep Bakshi
Headquarters: Mumbai, Maharashtra
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Kotak Mahindra Finance Ltd. (KMFL) was India's first Non Banking Finance Company (NBFC) to get a license from the RBI to convert into a bank.
The KMFL started its banking operation as Kotak Mahindra Bank in 2003.
In 2005, ING Vysya Bank merged with Kotak Mahindra Bank.
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