The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs1.91 Crore (Rupees One crore and ninety-one lakh only) on Axis Bank for non-compliance with certain directions issued by RBI on ‘Interest Rate on Deposits’, ‘Know Your Customer (KYC)’ and ‘Credit Flow to Agriculture- Collateral free agricultural loans’.
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| RBI Imposes Rs1.91 Crore Penalty on Axis Bank |
RBI Imposes Rs1.91 Crore Penalty on Axis Bank
RBI Imposes Penalty on Axis Bank: The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1.91 crore (Rupees One crore and ninety-one lakh) on Axis Bank Limited for contravention of provisions of Section 19 (1) (a) of the Banking Regulation Act, 1949 (BR Act), and non-compliance with certain directions issued by RBI on ‘Interest Rate on Deposits’, ‘Know Your Customer (KYC)’ and ‘Credit Flow to Agriculture- Collateral free agricultural loans’.
Apart from this, RBI has imposed a fine of Rs. 1 crore on HDFC Bank.
RBI Imposes Penalty on Axis Bank: Background
The Statutory Inspection for Supervisory Evaluation (ISE 2023) of the bank was conducted by RBI with reference to its financial position as on March 31, 2023 and a review of activities of its subsidiary company was carried out by RBI.
Read Also: RBI imposes 1.27 crore penalty on Bank of Maharashtra
The RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:
- The bank opened certain savings deposit accounts in the name of ineligible entities.
- The bank had allotted multiple customer identification code to certain customers instead of a Unique Customer identification Code (UCIC) for each customer.
- The bank had obtained collateral security for agricultural loans upto ₹1.60 lakh in certain cases.
- A wholly owned subsidiary of the bank undertook business as a technology service provider, which is not permissible business that can be undertaken by a banking company under Section 6 of the BR Act.
Static Current Affairs related to Axis Bank for upcoming exams
- Formation: 3 December 1993; As UTI Bank
- Headquarters: Mumbai, Maharashtra
- Number of locations: 5377 (March 2024)
- Managing Director & Chief Executive Officer: Amitabh Chaudhry
- Chairperson: Rakesh Makhija
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