India – RBI Bank Shareholding Fine

India – RBI Bank Shareholding Fine

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.