ICICI Bank and Kotak Mahindra Bank get financial penalties from the RBI

18 Oct 2023 , 01:35 PM

On October 17, the Reserve Bank of India (RBI) announced that it has fined ICICI Bank and Kotak Mahindra Bank for breaking the rules.

According to a press release, the central bank fined ICICI Bank Rs 12.19 crore and Kotak Mahindra Bank Rs 3.95 crore.

In accordance with the terms and conditions of the sanction, Kotak Mahindra Bank was penalized for failing to conduct an annual review of the service provider, for failing to ensure that customers are not contacted after 7 p.m. and before 7 a.m., and for charging interest from the disbursement due date rather than the actual date of disbursement.

Additionally, the bank has assessed foreclosure fees despite the loan agreement having no provision for prepayment penalties to be assessed on loans that are recalled or put up for foreclosure at the bank’s request, according to the press release.

The ICICI Bank was fined by the central bank for marketing and selling non-financial products, failing to report frauds to the RBI within the allotted time frames, and sanctioning/committing loans to businesses where two of its directors also served as directors.

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