Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 61.95 lakh on Kotak Mahindra Bank Limited for non-compliance with certain regulatory directions, according to an order dated December 11, 2025.

The penalty has been levied for violations related to RBI guidelines on Basic Savings Bank Deposit Accounts (BSBDA), norms governing the scope of activities of Business Correspondents (BCs), and contravention of provisions of the Credit Information Companies Rules, 2006. The action has been taken under the relevant provisions of the Banking Regulation Act, 1949 and the Credit Information Companies (Regulation) Act, 2005.

The penalty follows RBI’s Statutory Inspection for Supervisory Evaluation (ISE 2024), conducted with reference to the bank’s financial position as on March 31, 2024. Based on supervisory findings, the central bank had issued a show-cause notice to the lender, seeking an explanation for the observed non-compliances.

After examining the bank’s response and additional submissions, RBI found that the bank had opened multiple BSBDA accounts for certain customers who already held such accounts, entered into arrangements with business correspondents for activities beyond their permitted scope, and furnished inaccurate borrower information to Credit Information Companies.

RBI clarified that the penalty is based on deficiencies in regulatory compliance and does not reflect on the validity of any transaction or agreement entered into by the bank with its customers. The action is also without prejudice to any further measures that the regulator may initiate against the bank.