Current Affairs

RBI imposed Rs. 2 cr penalty on Kotak Mahindra Bank

The Reserve Bank of India (RBI) has imposed a penalty of Rs 2 crore on Kotak Mahindra Bank for not furnishing information about the dilution of promoter shareholding.
RBI imposed Rs. 2 cr penalty on Kotak Mahindra Bank

Details:

  • The penalty was imposed by the RBI in exercise of powers vested in it under the provisions of the Banking Regulation Act, 1949.
  • It is mainly based on the deficiencies in regulatory compliance.
  • It is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank.
  • The bank failed to comply and a show cause notice was issued to the bank as to why penalty should not be imposed for non-compliance with the said directions.
  • Uday Kotak recently told the Bombay High Court, he was in full compliance of the RBI rules and the regulator had never communicated to the promoters on the matter of shareholding.

About the Reserve Bank of India (RBI):

  • RBI has its headquarters in Mumbai, Maharashtra, India.
  • It was established on 1st April 1935.
  • The current Governor of RBI is Shaktikanta Das.

Question:

Q. The RBI has imposed a penalty of Rs 2 crore on which bank for not furnishing information about the dilution of promoter shareholding?
a. Kotak Mahindra Bank
b. HDFC Bank
c. Bandhan Bank
d. RBL Bank
RBI imposed Rs. 2 cr penalty on Kotak Mahindra Bank RBI imposed Rs. 2 cr penalty on Kotak Mahindra Bank Reviewed by Neha on June 11, 2019 Rating: 5

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