The Reserve Financial institution of India (RBI) on Tuesday mentioned it has imposed financial penalty on ICICI Financial institution and Kotak Mahindra Financial institution for non-compliance of sure regulatory norms. In line with the discharge, the central financial institution has imposed Rs 12.19 crore financial penalty on ICICI Financial institution and Rs 3.95 crore on Kotak Mahindra Financial institution.
Kotak Mahindra Financial institution has been penalised because the lender failed to hold out annual assessment/due diligence of the service supplier, failed to make sure that prospects are usually not contacted after 7 pm and earlier than 7 am, and levied curiosity from disbursement due date as an alternative of the particular date of disbursement, opposite to the phrases & circumstances of sanction, in line with the discharge.
Additional, financial institution has additionally levied foreclosures expenses regardless of there being no clause within the mortgage settlement for levy of prepayment penalty on loans recalled/foreclosures initiated by the financial institution, launch added.
The RBI penalised ICICI Financial institution as financial institution had sanctioned/dedicated loans to corporations through which two of its administrators had been additionally administrators, marketed and engaged within the sale of non-financial product, and did not report frauds to the RBI inside the prescribed timelines, the central financial institution mentioned in a launch.
In each circumstances, the RBI mentioned the penalties are based mostly on the deficiencies in regulatory compliance and isn’t meant to pronounce upon the validity of any transaction or settlement entered into by the banks with their prospects.
On Thursday, the central financial institution imposed a penalty of Rs 5.39 crore on Paytm Funds Financial institution Ltd for non-compliance with sure provisions, together with Know Your Buyer (KYC) norms. The central financial institution additionally discovered non-compliance with sure provisions associated to ‘RBI Pointers for Licensing of Funds Banks’, ‘Cyber safety framework in banks’ and ‘Securing cell banking functions together with UPI ecosystem’.
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