Business

RBI imposes Rs 25 lakh penalty on Axis Bank

ANI | September 02, 2021 12:51 PM
The action is based on deficiencies in regulatory compliance.

Mumbai (Maharashtra) [India], September 2 (ANI): The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 25 lakh on private sector lender Axis Bank for non-compliance with certain provisions of Know Your Customer (KYC) norms.

A scrutiny was carried out by RBI in February and March 2020 in a customer account. It was observed that the bank had failed to carry out on-going due diligence that the transactions were consistent with its knowledge about the customer, customer's business and risk profile.

A notice was issued to the bank advising it to show cause why penalty should not be imposed on it for contravention of the directions.

After considering the bank's reply and oral submissions, the RBI came to the conclusion that the charge of contravention of/non-compliance with its directions were substantiated and warranted imposition of monetary penalty.

The penalty was imposed in exercise of powers vested in RBI under provisions of section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act 1949.

The RBI said that the action is based on deficiencies in regulatory compliance and is not intended to pronounce upon validity of any transaction or agreement entered into by the bank with its customers. (ANI)

Have something to say? Post your comment
Must Read
'Bigg Boss 13' winner Sidharth Shukla passes away
'Bigg Boss 13' winner Sidharth Shukla passes away
The religious and social organizations of Faridkot town get funds for their contribution and dedication to the public welfare works
The religious and social organizations of Faridkot town get funds for their contribution and dedication to the public welfare works
Punjab government observes 26th death anniversary of late CM Beant Singh as ‘Sarab Dharam Prathana Sabha’
Punjab government observes 26th death anniversary of late CM Beant Singh as ‘Sarab Dharam Prathana Sabha’
Punjab Congress row: Won't spare anyone if not allowed to take decisions, warns Sidhu
Punjab Congress row: Won't spare anyone if not allowed to take decisions, warns Sidhu
Capt Amarinder led Punjab govt announces another Rs 1500 cr bonanza for govt employees
Capt Amarinder led Punjab govt announces another Rs 1500 cr bonanza for govt employees
Punjab Cabinet gives nod to amend rules of Gram Sewaks for making Graduation basic qualification
Punjab Cabinet gives nod to amend rules of Gram Sewaks for making Graduation basic qualification
Punjab to launch ‘Mera Kaam Mera Maan’ scheme to help unemployed youth enhance skills & employability
Punjab to launch ‘Mera Kaam Mera Maan’ scheme to help unemployed youth enhance skills & employability
Punjab Cong row: There's resentment in MLAs against CM, says Pargat Singh
Punjab Cong row: There's resentment in MLAs against CM, says Pargat Singh
Punjab sugarcane farmers call off stir as CM hikes SAP to Rs. 360/quintal
Punjab sugarcane farmers call off stir as CM hikes SAP to Rs. 360/quintal
Free treatments worth Rs. 912 cr. provided to 8.06 lac beneficiaries in two years under SSBY–Balbir Sidhu
Free treatments worth Rs. 912 cr. provided to 8.06 lac beneficiaries in two years under SSBY–Balbir Sidhu
Sidhu slams Amarinder govt for low sugarcane prices in Punjab
Sidhu slams Amarinder govt for low sugarcane prices in Punjab
Five IAS officers transferred in Punjab (See list attached)
Five IAS officers transferred in Punjab (See list attached)