RBI Fines Kotak Mahindra, IDFC First, PNB for Compliance Issues

Mumbai, Apr 17 (PTI) The RBI on Thursday said it has imposed penalties on Kotak Mahindra Bank, IDFC First Bank, and Punjab National Bank for certain deficiencies in regulatory compliance.

The Reserve Bank of India (RBI), in a statement said a penalty of Rs 61.4 lakh has been imposed on Kotak Mahindra Bank for non-compliance with certain directions on 'Guidelines on Loan System for Delivery of Bank Credit' and 'Loans and Advances – Statutory and Other Restrictions'.

In another statement, RBI said a penalty of Rs 38.6 lakh has been imposed on IDFC First Bank for non-compliance with certain directions of ‘Know Your Customer (KYC)'.

Penalty of Rs 29.6 lakh has been imposed on Punjab National Bank for non-compliance with certain directions issued by RBI on 'Customer Service in Banks'.

In all the three cases, the central bank the penalties are based on deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.