The private sector lender violated certain provisions on loans and advances, Know Your Customer (KYC) guidelines and ‘levying penal charges for non-maintenance of minimum balance in savings bank accounts’, it added.
Highlight
- Reserve Bank of India said it has imposed a fine of Rs 93 lakh on Axis Bank for various violations
- IDBI Bank fined for non-compliance with instructions – RBI fined Rs 90 lakh
- Private sector lender violated certain provisions on loans and advances, KYC guidelines: RBI
The Reserve Bank of India on Friday said it has imposed a fine of Rs 93 lakh on Axis Bank for various violations, including KYC guidelines. The central bank has also imposed a fine of Rs 90 lakh on IDBI Bank.
A monetary penalty of Rs 93 lakh has been imposed on Axis Bank for non-compliance of certain directions issued by the RBI, the regulator said in a release.
The private sector lender violated certain provisions on loans and advances, Know Your Customer (KYC) guidelines and ‘levying penal charges for non-maintenance of minimum balance in savings bank accounts’, it added.
IDBI Bank has been penalized for non-compliance of instructions on ‘Fraud – Classification and Reporting by Commercial Banks and Select Financial Institutions’.
The penalty was also imposed for “violating norms for strengthening of control of payment ecosystem between sponsor banks and corporate customers such as SCBs/UCBs” and “cyber security framework”, according to another release.
RBI, however, said the penalty is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into with its respective customers.
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