Big action by RBI, heavy fine imposed on ICICI and Kotak Mahindra Bank

New Delhi (Uttam Hindu News): RBI has imposed heavy fine on the country’s two largest private banks, ICICI Bank and Kotak Mahindra Bank, for not following the rules related to banking. Both banks have to pay a total fine of more than Rs 15 crore.

Reserve Bank of India has imposed a fine of Rs 12.19 crore on ICICI Bank and Rs 3.95 crore on Kotak Mahindra Bank. This fine has been imposed on banks due to violation of various rules. Where fine has been imposed on ICICI Bank for not properly following the provisions of the Banking Regulation Act. This penalty has been imposed on Kotak Mahindra Bank for violation of several guidelines of the Reserve Bank.

Kotak Mahindra Bank did not properly follow the guidelines of RBI regarding recovery alert, customer service within the bank, risk management and code of conduct in outsourcing of financial services and disbursement of loans. Therefore the Central Bank has imposed a fine on him. The bank has failed to review all these guidelines annually. The bank has paid attention to one of the biggest issues of customer comfort. That is, Kotak Mahindra Bank has failed to ensure that loan recovery agents do not call customers outside the limit of 7 am to 7 pm.

The central bank has imposed a fine on ICICI Bank for negligence in classifying and reporting fraud. RBI says that under the Banking Regulation Act, it has the power to take such action, using which it has taken this action. ICICI Bank has given loans to such companies, whose directors include two people who are also on the board of the bank. These companies work in non-financial product sector.