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RBI Fines Kotak Mahindra Bank Rs 61.95 Lakh for Compliance Lapses

The central bank acted on ISE 2024 inspection findings that flagged breaches in basic accounts, business correspondent scope, credit reporting.

Overview

  • The penalty was ordered on December 11, 2025, and totals Rs 61.95 lakh.
  • RBI’s action followed its Statutory Inspection for Supervisory Evaluation (ISE 2024) referencing the bank’s position as of March 31, 2024.
  • Inspectors found multiple Basic Savings Bank Deposit accounts were opened for customers who already held such accounts.
  • The bank’s business correspondent arrangements covered activities beyond the permitted scope, and borrower data sent to credit bureaus was inaccurate.
  • After reviewing a show-cause response and additional submissions, the RBI sustained the charges and said the measure does not question customer transactions or agreements.