The Reserve Bank of India has revised its master direction on Know Your Customer (KY

The Reserve Bank of India (RBI) has imposed penalties on two private-sector lenders – ICICI Bank and Kotak Mahindra Bank. ICICI Bank was fined Rs 12.19 crore as the regulator found from its Inspections for Supervisory Evaluation (ISE) for its financial position as on March 31, 2020, and March 31, 2021, that the bank sanctioned/committed loans to firms in which two of its directors were also directors.   ICICI Bank was also found marketed and engaged in the sale of non-financial products and failed to report frauds to the RBI within the prescribed timelines.   Kotak Mahindra Bank was fined Rs 3.95 crore as it levied foreclosure charges despite there being no clause in the loan agreement for levy of prepayment penalty on loans recalled/foreclosure initiated by the bank.