Axis Bank Penalty: The Reserve Bank of India (RBI) has levied a penalty of approximately Rs 91 lakh on Axis Bank, and here are the details behind this development.
RBI Penalizes Axis Bank: In a significant move against the country’s largest private sector bank, the RBI has imposed a penalty of Rs 90.92 lakh, as revealed in a recent press release by the central bank. This action was taken due to Axis Bank’s failure to comply with RBI regulations.
Reasons for Action Against Axis Bank
As per RBI’s explanation, the penalty on Axis Bank stemmed from its non-adherence to Know Your Customer (KYC) guidelines. The bank fell short in maintaining records related to identity and address details of certain customers, leading to the penalty for non-compliance with 2016 KYC directives.
Misconduct by Recovery Agents
Additionally, the RBI discovered misconduct by some of Axis Bank’s recovery agents while dealing with customers who had taken loans. RBI issued a notice to the bank regarding this behavior. Although the bank responded, the RBI found the response unsatisfactory, resulting in the imposed penalty.
Fine on Manappuram Finance
Alongside Axis Bank, the RBI also took action against Manappuram Finance, imposing a total fine of Rs 42.78 lakh. This action was a consequence of the finance company’s breach of regulations outlined in the Non-Banking Finance Company-Systemically Important Non-Deposit Taking Company and Deposit Taking Company 2016 guidelines.