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Informist, Thursday, Apr. 17, 2025

--RBI fines Kotak Mahindra Bank INR 6.14 mln

--RBI fines Punjab National Bank INR 2.96 mln

--RBI fines IDFC FIRST Bank INR 3.86 mln for breach of KYC norms

--RBI fines IDFC FIRST Bank INR 3.86 mln

MUMBAI – The Reserve Bank of India on Thursday imposed a monetary penalty on IDFC FIRST Bank, Punjab National Bank, and Kotak Mahindra Bank aggregating to INR 12.9 million, for non-compliance with several guidelines.

IDFC FIRST Bank has been fined INR 3.86 million for non-compliance with certain directions issued by the regulator on the 'Know Your Customer' guidelines. The bank failed to undertake requisite customer due diligence process for opening current accounts of certain sole proprietary firms.

Kotak Mahindra Bank was fined INR 6.14 million as the bank did not ensure that the outstanding "loan component" was at least the specified percentage of the sanctioned fund-based working capital limit for certain borrowers. It also failed to comply with the margin requirements for intra-day limits to certain stock-brokers. These are certain directions under the 'Guidelines on Loan System for Delivery of Bank Credit' and 'Loans and Advances – Statutory and Other Restrictions'.

Punjab National Bank was penalized INR 2.96 million for non-compliance with certain directions issued by the RBI on 'Customer Service in Banks'. The central bank levied penal charges for non-maintenance of minimum balance in inoperative accounts.

The RBI had conducted inspections at all the three banks, and based on its findings had issued a show cause notice to the banks. The penalties were imposed after considering their response.

On the National Stock Exchange, shares of Kotak Mahindra Bank closed 3.1% higher at INR 2,188.10, shares of Punjab National Bank closed 0.7% higher at INR 99.50, and the shares of IDFC FIRST Bank closed 0.5% lower at INR 63 on Thursday.  End

Reported by Kshipra Petkar

Edited by Nishant Maher

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