MUMBAI: The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs2 crore on Kotak Mahindra Bank for non-compliance with the disclosure of promoter shareholding.
Kotak Mahindra was directed by RBI to furnish information about details of the shareholding held by its promoters and to submit details of the proposed course of action/plans/strategy of the bank for complying with the permitted timeline for dilution of promoter shareholding.
Subsequently, the bank was directed to convey its commitment to achieve the dilution as per the timelines stipulated. However, the bank failed to comply with the said directions and a notice (SCN) was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with the said directions.
“After considering the reply received from the bank, submissions made by the bank during the personal hearing and the documents submitted by it, RBI came to the conclusion that the bank had failed to comply with the directions issued by RBI and decided to impose monetary penalty on the bank,” an RBI statement said.
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