ICICI Bank, Kotak Mahindra Bank fined by Reserve Bank of India

Reserve Bank of India (RBI) on Tuesday said that it has imposed a penalty of Rs 12.19 crore on ICICI Bank for violating rules related to code of conduct for bank's directors and for fraud reporting.

Also Re: HUDCO shares fall as government cuts stake

RBI's inspection reports showed ICICI Bank h sanctioned or committed loans to companies in which two of its directors were also directors, RBI said in a release.

bank h also marketed and engd in sale of n-financial product and failed to report frauds to central bank within prescribed timeline of within three weeks from detection.

violations were detected during inspections for financial years ending March 2020 and March 2021, RBI said.

central bank separately penalised fellow private lender Kotak Mahindra Bank with a sum of Rs 3.95 crore.

bank was found to have levied interest on some loans contrary to terms of sanction, failed to carry out an annual review of a service provider and ensure that its customers are t contacted between 7 pm and 7 am as directed by RBI, inspections showed.

se violations were caught during an inspection for financial year ending March 2022.