RBI slaps Rs16-cr penalty on 2 banks

Mumbai: The Reserve Bank of India (RBI) on Tuesday said it has imposed a penalty or Rs12.19 crore on ICICI Bank and Rs3.95 crore on Kotak Mahindra Bank for non-compliance of certain regulatory norms.The penalty on private sector lender ICICI Bank has been imposed for contravention of norms related to Loans and Advances-Statutory and Other restrictions and ‘Frauds classification and reporting by commercial banks and select Fls.’

In another statement, the RBI said the penalty on Kotak Mahindra Bank Limited has been imposed for contravention of directions related to Managing Risks and Code of Conduct in Outsourcing of Financial Services by banks, Recovery Agents engaged by Banks, Customer Service in Banks, and Loans and Advances - Statutory and Other Restrictions.