6:15 PM IST – The Reserve Bank of India (RBI) has fined Kotak Mahindra Bank Limited ₹61.95 lakh for not following some banking rules properly. The order was passed on December 11, 2025, after the RBI reviewed the bank’s work during its regular inspection.
This inspection looked at the bank’s position as of March 31, 2024. After checking the facts and reading the bank’s reply, RBI decided that the mistakes were serious enough to impose a penalty. On Dec 19, which means today, the RBI released a notification and said about the monetary penalty.
So, what really happened – The behind-the-story?
In simple words, RBI pointed out three main problems.
First – Basic savings accounts
RBI noticed some customers were given more than one basic savings bank account by the same bank. RBI rules are clear: a person can have only one such account in a bank. These accounts are meant for basic banking, especially for people who are new to the system. Opening more than one defeats that purpose.
For example, A person already has one zero-balance basic account. Later, the same bank opens another basic account for him. It is against the regulations.
Second – Bank agents are doing extra work
Banks use local agents, called Business Correspondents, to help customers in areas where branches are far away. The local Mobile shops that also open savings accounts. These agents are allowed to do limited work only. RBI found that Kotak Mahindra Bank had allowed some agents to do things that are not permitted under RBI rules.
Third – Wrong credit information
Banks share loan and repayment details with credit bureaus. This information decides whether a customer will get a loan or not. RBI found that the wrong details of some borrowers were shared, which can directly harm customers.
What RBI made clear
RBI also said something important. This penalty is only about rule-breaking. It does not mean that customer transactions are illegal. It also does not cancel any agreement between the bank and its customers. RBI has simply penalised the bank for not following instructions properly.
Why should common customers care?
Many people ignore such news, thinking it does not affect them. But it actually does.
- If basic account rules are ignored, small account holders suffer.
- If agents cross limits, customers can be misled or confused.
- If credit details are wrong, your loan or credit card can get rejected, even if you did nothing wrong.
These are everyday banking issues, not big scams. That is why RBI steps in early.
RBI is clearly getting stricter
This is not a one-off case. Just a few weeks earlier, on November 28, 2025, the RBI imposed a ₹91 lakh penalty on HDFC Bank (the biggest private bank of India) for separate lapses. Big banks, small banks—no one is getting a free pass.
The message from RBI is loud and clear: follow the rules at ground level, not just on paper.
Bottom line for customers
From a normal customer’s point of view:
- Keep track of how many accounts you have.
- Check your credit report once a year.
- Be careful when dealing with bank agents—ask questions.
RBI’s actions show that even small mistakes matter. For banks, it means tighter checks. For customers, it means better protection. if we stay aware.
