RBI Fines ICICI Bank, Kotak Mahindra Bank For Failing To Report Fraud

The Reserve Bank of India (RBI) has announced that ICICI Bank has been fined ₹ 12.19 crore for breaching regulations concerning the bank’s directors’ code of conduct and failure to report frauds within the stipulated timeframe. According to the RBI, its inspection reports revealed that ICICI Bank had granted loans to companies where two of its directors also held directorial positions. Additionally, the bank had sold non-financial products and failed to notify the central bank about detected frauds within the required three-week period.

Furthermore, Kotak Mahindra Bank, another private lender, was penalized separately with a fine of ₹ 3.95 crore. The inspections found that the bank had imposed interest on certain loans in contrast to the terms of sanction, neglected to conduct an annual review of a service provider, and had breached the RBI’s directive by contacting customers between 7 pm and 7 am. These violations were identified during an inspection for the fiscal year concluding in March 2022.

Picture Courtesy: Google/images are subject to copyright