Bangalore:
The Reserve Bank of India (RBI) on Tuesday said it has imposed a fine of Rs 12 crore 19 lakh on ICICI Bank for violating rules related to the bank’s director code of conduct and for reporting fraud.
The RBI’s inspection reports revealed that ICICI Bank had sanctioned or promised loans to companies in which two of its directors were also directors, the RBI said in a press release.
The bank had also marketed and sold non-financial products, and failed to report fraud to the central bank within the prescribed period of three weeks after discovery.
The violations were discovered during inspections for the financial years ending March 2020 and March 2021, the RBI said.
The central bank has separately penalized fellow private lender Kotak Mahindra Bank with an amount of Rs 3.95 crore.
Inspections found that the bank had charged interest on certain loans in breach of sanctions conditions, and had failed to conduct an annual assessment of a service provider and ensure that its customers are not contacted between 7pm and 7am, as prescribed by the RBI. .
These violations were discovered during an inspection for the financial year ending March 2022.
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