**Executive Summary**
This press release, dated December 19, 2025, announces that the Reserve Bank of India (RBI) has imposed a monetary penalty of ₹61.95 lakh on Kotak Mahindra Bank Limited. This penalty is for non-compliance with RBI directions and contravention of Credit Information Companies Rules, 2006. The order was issued December 11, 2025.
**Key Points / Main Content**
* **Monetary Penalty:**
* RBI has imposed a monetary penalty of ₹61.95 lakh on Kotak Mahindra Bank Limited.
* **Reason for Penalty:**
* Non-compliance with RBI directions on ‘Access to Banking Services - Basic Savings Bank Deposit Account' and 'Scope of activities to be undertaken of Business Correspondents (BCs)'.
* Contravention of provisions of Credit Information Companies Rules, 2006 (CIC Rules).
* **Basis for Penalty:**
* Statutory Inspection for Supervisory Evaluation (ISE 2024) of the bank with reference to its financial position as on March 31, 2024.
* Supervisory findings of non-compliance with RBI directions and CIC rules.
* The bank was given a notice to show cause as to why penalty should not be imposed.
* **Sustained Charges Against the Bank:**
* The bank opened another BSBD account of certain customers who were already holding BSBD account in the bank.
* The bank entered into an arrangement with BCs for undertaking activities not covered within the allowed scope.
* The bank furnished inaccurate information to Credit Information Companies (CICs).
* **Nature of Action:**
* Based on deficiencies in statutory and regulatory compliance.
* Not intended to pronounce on the validity of transactions with customers.
* Imposition of the monetary penalty is without prejudice to other actions by RBI.
**Impact Analysis**
**Kotak Mahindra Bank Limited**
* **Impact**
* Financial penalty of ₹61.95 lakh imposed.
* Potential reputational damage.
* Required to address the identified deficiencies to ensure compliance with RBI directions and CIC rules.
* **Action Required**
* Pay the monetary penalty.
* Review and rectify the identified deficiencies in operations and reporting.
* Implement measures to prevent future non-compliance.
**Customers of Kotak Mahindra Bank Limited**
* **Impact**
* The press release states that the action is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
* **Action Required**
* No immediate action required.
**Credit Information Companies (CICs)**
* **Impact**
* May need to review processes for verifying information received from Kotak Mahindra Bank Limited.
* **Action Required**
* Potentially review processes and data provided by the bank.
Key Entities Referenced
Reserve Bank of India (RBI): Imposed monetary penalty for non-compliance and statutory deficiencies.
Kotak Mahindra Bank Limited: The bank on which the monetary penalty was imposed.
Credit Information Companies Rules, 2006 (CIC Rules): Rules related to credit information that were contravened.
Banking Regulation Act (BR Act): Statute under which powers were exercised to impose the penalty.
Credit Information Companies (Regulation) Act, 2005: Statute related to credit information regulation.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट
:
www.rbi.org.in/hindi
संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
December 19, 2025
RBI imposes monetary penalty on Kotak Mahindra Bank Limited
The Reserve Bank of India (RBI) has, by an order dated December 11, 2025,
imposed a monetary penalty of ₹61.95 lakh (Rupees Sixty One Lakh Ninety Five
Thousand only) on Kotak Mahindra Bank Limited (the bank) for non-compliance with
certain directions issued by RBI on ‘Access to Banking Services - Basic Savings
Bank Deposit Account’ and ‘Scope of activities to be undertaken of Business
Correspondents (BCs)’ and contravention of provisions of Credit lnformation
Companies Rules, 2006 (ClC Rules). This penalty has been imposed in exercise of
powers conferred on RBI under the provisions of section 47A(1)(c) read with section
46(4)(i) of the BR Act and section 25(1)(iii) read with section 23(4) of the Credit
Information Companies (Regulation) Act, 2005.
The Statutory Inspection for Supervisory Evaluation (ISE 2024) of the bank was
conducted by RBI with reference to its financial position as on March 31, 2024.
Based on supervisory findings of non-compliance with the provisions of RBI
directions, CIC rules and related correspondence in that regard, a notice was issued
to the bank advising it to show cause as to why penalty should not be imposed on it
for its failure to comply with the said provisions of RBI directions and CIC rules.
After considering the bank’s reply to the notice and additional submissions made
by it, RBI found, inter alia, that the following charges against the bank were
sustained, warranting imposition of monetary penalty:
i. The bank opened another BSBD account of certain customers who were already
holding BSBD account in the bank;
ii. The bank entered into an arrangement with BCs for undertaking activities, which
are not covered within the scope of activities that can be undertaken by BCs; and
iii. The bank furnished inaccurate information, in respect of certain borrowers, to
Credit Information Companies (CICs).
This action is based on deficiencies in statutory and regulatory compliance and is
not intended to pronounce upon the validity of any transaction or agreement entered
into by the bank with its customers. Further, imposition of monetary penalty is without
prejudice to any other action that may be initiated by RBI against the bank.
(Brij Raj)
Press Release: 2025-2026/1742 Chief General Manager