RBI Imposes Monetary Penalty ₹61.95 lakh on Kotak Mahindra Bank Limited
Mumbai, December 19, 2025 – The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹61.95 lakh on Kotak Mahindra Bank Limited for non-compliance with regulatory directions related to Basic Savings Bank Deposit (BSBD) accounts, business correspondent (BC) operations, and credit information reporting.
The penalty, levied under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, and Section 25(1)(iii) read with Section 23(4) of the Credit Information Companies (Regulation) Act, 2005, stems from supervisory findings during RBI’s Statutory Inspection for Supervisory Evaluation (ISE 2024) with reference to the bank’s financial position as of March 31, 2024.
According to RBI, the penalty arises from:
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Opening multiple BSBD accounts for customers who already held accounts with the bank.
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Engaging business correspondents in activities beyond the scope permitted under RBI regulations.
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Furnishing inaccurate information to Credit Information Companies (CICs) regarding certain borrowers.
RBI clarified that this action addresses deficiencies in statutory and regulatory compliance and does not question the validity of transactions or agreements between Kotak Mahindra Bank and its customers. The imposition of the penalty is without prejudice to any other action that may be initiated against the bank.
Kotak Mahindra Bank has responded to RBI’s show-cause notice, and the penalty reflects RBI’s assessment of the bank’s compliance shortcomings.
This move underscores RBI’s continued oversight on banking operations and adherence to regulatory norms to safeguard financial integrity and customer interests.