The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2 million on Kotak Mahindra Bank for non-compliance with various directions issued by RBI on Know Your Customer (KYC) norms / Anti-Money Laundering (AML) standards, more specifically those contained in circulars dated November 29, 2004 and May 22, 2008.
The penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, taking into account failure of the above bank to adhere to the aforesaid directions issued by RBI.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with their customers.
Kotak Mahindra Bank offers a wide range of banking products and financial services for corporate and retail customers through a variety of delivery channels and specialized subsidiaries in the areas of personal finance, investment banking, life insurance, and wealth management.
