A March 2024 investigation by Scroll and Project Electoral Bond reported that Infina Finance, a Kotak group firm, bought ₹60 crore in electoral bonds that went to the Bharatiya Janata Party (BJP). It placed ₹35 crore in purchases before a 2020 RBI decision on Kotak Mahindra Bank’s promoter shareholding and a separate ₹25 crore purchase before a 2021 RBI announcement concerning bank leadership tenure. The dates raise a public-interest question, but the reporting does not establish that the donations caused or influenced either decision.
What the investigation reported
Scroll and Project Electoral Bond reported on March 28, 2024, that Infina Finance Private Limited bought ₹60 crore in electoral bonds and that the BJP was the sole recipient. The report described Infina as a Mumbai-based non-bank financial firm registered with the RBI, jointly owned by Kotak Mahindra Bank through a subsidiary and the Kotak family. Its ownership description drew on the company’s website and Care Ratings.
The report linked two groups of purchases to later RBI events involving Kotak Mahindra Bank: ₹35 crore before an out-of-court settlement over promoter shareholding in January 2020, and ₹25 crore before an April 2021 policy announcement on bank leadership appointments. The transactions and event dates below are as reported by Scroll; the precise settlement terms and appointment circular have not been independently verified here.
Timeline: bond purchases and RBI events
| Date | Reported event | Why it matters |
|---|---|---|
| February 2013 | The RBI issued guidelines that, according to Scroll’s summary, capped a private-bank promoter’s stake at 15% within 12 years of the bank commencing business. The report said Kotak Mahindra Finance received its banking licence in 2003. | Background to the later dispute over Kotak Mahindra Bank’s promoter shareholding. |
| December 2018 | Kotak Mahindra Bank took the RBI to court over the promoter-shareholding dispute, according to Scroll. | The dispute preceded the 2020 settlement. |
| October 10, 2019 | Infina bought ₹25 crore in bonds. Scroll reported that the BJP encashed them on October 16. | One part of the ₹35 crore purchased before the reported January 2020 settlement. |
| January 16, 2020 | Infina bought another ₹10 crore in bonds. Scroll reported that the BJP redeemed them on January 21. | The reported redemption was eight days before the RBI accepted Kotak’s proposal. |
| January 29, 2020 | Scroll dated the RBI’s acceptance of Kotak Mahindra Bank’s promoter-shareholding proposal to this period, following an out-of-court settlement. | This was the reported outcome of the shareholding dispute. |
| April 7, 2021 | Infina bought ₹25 crore in bonds. Scroll reported that the amount was credited to the BJP on April 12. | The credit preceded the RBI’s policy announcement later that month. |
| April 26, 2021 | The RBI announced new guidelines that, according to Scroll, enabled Uday Kotak to remain managing director and CEO for another 32 months. | The announcement was a separate leadership-tenure matter, not the 2020 shareholding settlement. |
| September 1, 2023 | Uday Kotak resigned as managing director and CEO, four months before the end of the reported extension. Scroll said he retained a 25.71% stake. | Later context on the reported tenure and shareholding. |
How close were the reported dates?
The 2020 promoter-shareholding settlement
The two bond purchases before the reported January 2020 RBI acceptance totalled ₹35 crore: ₹25 crore bought in October 2019 and ₹10 crore in January 2020. The January tranche was reportedly redeemed by the BJP eight days before the RBI accepted Kotak’s proposal. The chronology is close in time, but it does not show why the RBI made its decision or establish that the donation affected it.
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The 2021 leadership announcement
The separate ₹25 crore purchase took place on April 7, 2021, and was reportedly credited to the BJP on April 12. The RBI announcement followed on April 26—14 days after the reported credit. Scroll said the guidelines allowed Uday Kotak to remain in the role for another 32 months. The reported sequence alone does not establish a connection between the contribution and the policy.
What the chronology can—and cannot—show
The reporting presents a documented sequence of bond transactions and regulatory events. That is relevant to public scrutiny of political donations and regulation, but timing is not proof of a quid pro quo, communication, improper influence, or causation. No evidence in the cited reporting establishes that Infina’s purchases shaped the RBI’s reasoning, and no named primary-source statement explaining the RBI’s decision-making is identified there.
Former Finance Secretary Subhash Chandra Garg disputed the implication that the donations could explain the decisions. Speaking to Newslaundry, he said, “The donation is too small for a connection… For that matter, even the RBI would not make such a big policy change for such a small thing,” and called a connection “far-fetched.” That is Garg’s assessment, not a finding about the RBI’s reasoning.
Scroll also noted that Federal Bank CEO Shyam Srinivasan and DCB Bank CEO Murali Natarajan received extensions, but for one year, compared with the three-year extension it reported for Kotak. This provides some comparative context; it does not establish why the RBI set different terms.
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The RBI’s 2022 annual report, covering policy developments in 2020–21, said the regulator accepted 21 recommendations from its Internal Working Group on private-bank ownership and corporate structure, some with modifications. Among them was a long-run promoter holding of 26%. This is broad ownership-policy context; it should not be confused with the separate April 2021 leadership-appointment guidelines or treated as an explanation for the reported Kotak decisions.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.A later RBI action was unrelated to those earlier events
On April 24, 2024, the RBI directed Kotak Mahindra Bank to stop onboarding new customers through online and mobile channels and issuing fresh credit cards. The bank’s 2024 results disclosure attributed the directions to deficiencies found in an IT examination and said the RBI would review them after satisfactory remediation. This was a later IT-related regulatory action, distinct from the 2020 shareholding matter and 2021 leadership policy.
Quick Recap
Sources
- Scroll / Project Electoral Bond, March 28, 2024: Infina Finance’s reported bond purchases and the related RBI chronology.
- Newslaundry, March 30, 2024: reporting and Subhash Chandra Garg’s assessment.
- Reserve Bank of India, Annual Report 2021–22: policy developments and Internal Working Group recommendations.
- Kotak Mahindra Bank, financial results: disclosure concerning the RBI’s April 2024 directions.
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