Team Blitz India
NEW DELHI: The Reserve Bank of India (RBI) imposed a penalty of Rs 12.19 crore on ICICI Bank for sanctioning loans to companies in which two of its directors were also directors and failing to report frauds to the regulator within the prescribed timelines.
This comes after the Central Bank conducted statutory inspections for supervisory evaluation of ICICI Bank with regards to its financial position as of March 31, 2020, and March 31, 2021.
The examination of the risk assessment reports revealed that the bank had sanctioned loans to companies in which two of its directors were also directors, marketed and engaged in the sale of non-financial products, and failed to report frauds to RBI within the prescribed timelines, says the banking regulator.
Consequently, a notice was issued to the bank advising it to show cause as to why a penalty should not be imposed on it for failure to comply with the provisions of the Banking Regulation Act, the regulator said.
RBI also imposed a monetary penalty of Rs3.95 crore on Kotak Mahindra Bank for non-compliance with RBI directions on managing risks and code of conduct in outsourcing of financial services by banks.