On 7 June 2019, IND RBI fined Kotak Mahindra Bank for disclosures.
- This action is based on deficiencies in following regulatory compliance directive.
- The bank was told to submit information about details of the shareholding held
by its promoters and submit details of proposed course of action/plan/strategy.
- For complying with the permitted timeline for dilution of promoter shareholding.
Failure to Report
- However, bank failed to comply with the direction within the agreed timeframe.
- The bank was advised to show cause as to why penalty should not be imposed.
- After considering the submissions made by the bank during the hearing, it was
concluded that the bank had failed to comply with the RBI directions as issued
- Monetary penalty of RP20mn has been imposed on the Kotak Mahindra Bank.