 "Reserve Bank of India, RBI")
The Reserve Bank of India (RBI) on Tuesday imposed penalties on two private-sector lenders – ICICI Bank and Kotak Mahindra Bank.
ICICI Bank was fined Rs 12.19 crore as the regulator found from its Inspections for Supervisory Evaluation (ISE) for its financial position as on March 31, 2020, and March 31, 2021, that the bank sanctioned/committed loans to firms in which two of its directors were also directors.
ICICI Bank was also found marketed and engaged in the sale of non-financial products and failed to report frauds to the RBI within the prescribed timelines. Kotak Mahindra Bank was fined Rs 3.95 crore as it levied foreclosure charges despite there being no clause in the loan agreement for levy of prepayment penalty on loans recalled/foreclosure initiated by the bank, the RBI said.
The Inspection for Supervisory Evaluation report on the bank’s financial position as on March 31, 2022, found non-compliance of certain RBI norms including failing to carry out annual review /due diligence of the service provider, and failing to ensure that customers are not contacted after 7 pm and before 7 am.
Kotak Mahindra Bank was found that it levied interest from disbursement due date instead of the actual date of disburse–ment, contrary to the conditions of sanction, the RBI said.
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