**Executive Summary**
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹61.95 lakh on Kotak Mahindra Bank Limited, as per order dated December 11, 2025. This penalty is for non-compliance with RBI directions regarding Basic Savings Bank Deposit Accounts and Business Correspondents' activities, as well as contravention of Credit Information Companies Rules, 2006. The decision follows a Statutory Inspection for Supervisory Evaluation (ISE 2024) with reference to the bank's financial position as on March 31, 2024.
**Key Points / Main Content**
* **Penalty Imposition:**
* RBI imposed a monetary penalty of ₹61.95 lakh on Kotak Mahindra Bank Limited on December 11, 2025.
* The penalty is imposed under 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.
* **Reasons for Penalty:**
* Non-compliance with RBI directions on 'Access to Banking Services - Basic Savings Bank Deposit Account'.
* Non-compliance with directions on 'Scope of activities to be undertaken of Business Correspondents (BCs)'.
* Contravention of provisions of Credit Information Companies Rules, 2006 (CIC Rules).
* **Supervisory Findings:**
* Statutory Inspection for Supervisory Evaluation (ISE 2024) was conducted with reference to the bank’s financial position as on March 31, 2024.
* RBI found the following:
* 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, which are not covered within the scope of activities that can be undertaken by BCs.
* The bank furnished inaccurate information in respect of certain borrowers, to Credit Information Companies (CICs).
* **Disclaimer:**
* The action is based on deficiencies in statutory and regulatory compliance.
* It does not pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
* The penalty is without prejudice to any other action that may be initiated by RBI against the bank.
**Impact Analysis**
**Kotak Mahindra Bank Limited**
* **Impact**
* Financial penalty of ₹61.95 lakh.
* Reputational damage due to non-compliance.
* Potential for further action by RBI.
* **Action Required**
* Pay the penalty.
* Review and rectify deficiencies in compliance related to Basic Savings Bank Deposit Accounts, Business Correspondents, and Credit Information Companies Rules.
* Strengthen compliance framework to prevent future violations.
Key Entities Referenced
Reserve Bank of India (RBI): The regulator that imposed the monetary penalty.
Kotak Mahindra Bank Limited: The bank on which the monetary penalty was imposed.
Banking Regulation Act: The BR Act is one of the pieces of legislation cited as the basis for the penalty.
Credit Information Companies Rules, 2006 (CIC Rules): Rules which the bank contravened.
Credit Information Companies (Regulation) Act, 2005: Act cited as the basis for the penalty.
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