Reserve Bank of India (RBI) imposed a penalty of ₹2 crore on Kotak Mahindra Bank for not furnishing information about the dilution of promoter shareholding.
The penalty imposed 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 Reserve Bank of India
Headquarters: Mumbai, Maharashtra, India
Established: 1 April 1935
Governor: Shaktikanta Das