The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 61.95 lakh on Kotak Mahindra Bank for non-compliance with regulatory norms relating to Basic Savings Bank Deposit (BSBD) accounts, business
correspondents, and credit information companies, according to a statement.
The penalty was imposed through an order dated December 11, 2025, following supervisory findings by the central bank, the RBI said in the statement.
The RBI said the action was taken for violations of its directions on ‘Access to Banking Services – Basic Savings Bank Deposit Account’ and ‘Scope of activities to be undertaken by Business Correspondents (BCs)’, along with contravention of provisions under the Credit Information Companies Rules, 2006.
The lapses came to light during the Statutory Inspection for Supervisory Evaluation (ISE 2024) conducted with reference to the bank’s financial position as on March 31, 2024.
During the inspection, the RBI found that the bank had opened multiple BSBD accounts for certain customers who already held such accounts, in violation of applicable norms. It also observed that the bank had entered into arrangements with business correspondents for carrying out activities beyond the permitted scope.
In addition, the lender was found to have furnished inaccurate information on certain borrowers to credit information companies.
After examining Kotak Mahindra Bank’s response to the show-cause notice and its additional submissions, the RBI concluded that the charges were sustained, warranting the imposition of a monetary penalty. The regulator clarified that the action was based on compliance deficiencies and does not call into question the validity of any transactions or agreements entered into by the bank with its customers.
