RBI imposes penalty on Axis Bank for violation of certain rules
The Reserve Bank of India (RBI) today imposed a monetary penalty of Rs 25 lakh on Axis Bank for violation of rules. The RBI in a September 1 order held Axis Bank responsible for failing to comply with the provisions of the Reserve Bank of India – (Know Your Customer (KYC)) Directions, 2016.
The banking regulator conducted checks in the customer account maintained with a major private bank during February 2020 and March 2020. RBI observed that Axis Bank has failed to comply with the instructions issued by it as to ensure that the transactions were in accordance with its knowledge of the customer, the business and risk profile of the customer, in the particular account. Failed to monitor or conduct ongoing due diligence. .
Following this, the RBI issued a notice to Axis Bank, asking why it should not be penalized for violating the directions.
After considering the reply to the notice and the oral submissions made during the personal hearing, the RBI stated that it has “come to the conclusion that the allegation of contravention/non-compliance with the above RBI directions is substantiated” and then imposed monetary penalty. Gaya. .
However, RBI said the penalty is based on deficiencies in regulatory compliance and will not affect the validity of any transaction or agreement entered into by Axis Bank with its customers.
On Wednesday, September 1, shares of Axis Bank closed 1.54 per cent higher at Rs 798.50 on the BSE. In the entire trading session so far, Axis Bank opened at Rs 796 on the BSE, which was at an intraday high of Rs 819 and an intraday low of Rs 795.95.
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