The Reserve Bank of India (RBI) imposed a monetary penalty of Rs 1.05 crore and Rs 1 crore on Kotak Mahindra Bank and IndusInd Bank, respectively, for deficiencies in regulatory compliance.

• In case of Kotak Mahindra Bank, the RBI found that the private lender failed to maintain margin on advances to stock brokers; credit (shadow reversal) the amount involved in the unauthorised electronic transactions to the customers’ account within 10 working days from the date of notification by the customer; and credit eligible amount to the Depositor Education and Awareness Fund within the period prescribed.
• This was found in a statutory inspection for supervisory evaluation of the bank conducted by RBI with reference to its financial positions as on March 31, 2018 and March 31, 2019.