Mumbai, Jan 30 (IANS): Kotak Mahindra Bank on Thursday said that RBI has accepted capping promoters' voting rights in the bank to 20 per cent of paid-up voting equity share capital until March 31, 2020 and that it is withdrawing its writ petition filed in the Bombay High Court.

The bank said RBI has also conveyed its in-principle acceptance for capping promoters' voting rights further to 15 per cent of paid-up equity capital from April 1, 2020 onwards to enable the bank to comply with promoter shareholding allowed in the financial sector.

The RBI's bank licensing rules mandate that a private bank's promoter will need to pare holding to 40 per cent within three years, 20 per cent within 10 years and 15 per cent within 15 years.

According to the regulatory filing by Kotak Mahindra Bank, RBI has directed the promoters' shareholding in the "bank to be reduced to 26 per cent of paid up equity capital within six months from the date of final approval of the RBI."

"Thereafter, the promoters will not purchase any further paid-up voting equity shares' of the bank till the percentage of promoters' shareholding reaches 15 per cent of the Bank or such higher percentage as may be permitted by RBI from time to time," it added.

Besides RBI has also said "The promoters will be entitled to purchase paid-up voting equity shares of the bank up to 15 per cent of the paid-up voting equity share capital of the Bank or such higher percentage as may be permitted in the future, and exercise voting rights on such shares".