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RBI imposed a fine of Rs 25 lakh on Axis Bank, know what is the reason

The Reserve Bank of India (RBI) on Wednesday said that it has decided to invest in Axis Bank Ltd. But for violation of certain provisions of Know Your Customer (KYC) has imposed a fine of Rs 25 lakh.


New Delhi. The Reserve Bank of India (RBI) on Wednesday said that it has decided to invest in Axis Bank Ltd. But for violation of certain provisions of Know Your Customer (KYC) has imposed a fine of Rs 25 lakh. The central bank said that during February and March, 2020, the account of an Axis Bank customer was verified. During investigation, it was found that the bank failed to comply with the provisions contained in the RBI’s KYC Directions, 2016.

According to the statement, the bank failed to conduct due diligence with respect to the account concerned. Due to this the bank could not ensure that the transactions in the customer’s account are commensurate with his business and risk profile. RBI has given notice to the bank in this regard. After considering the reply to the notice and the oral explanation, it was decided to impose the fine.



Earlier also RBI action

The Reserve Bank of India (RBI) has imposed a fine of Rs 5 crore on Axis Bank for violating certain provisions of its directives including cyber security framework. The Reserve Bank gave this information on Tuesday. Explain that the central bank often keeps levying fines on banks for not following the rules. A few days ago, RBI imposed monetary penalty on 14 banks including Bandhan Bank, Bank of Baroda and State Bank of India (SBI) for violating various rules.

The penalty imposed on this account has been imposed for “violation/non-compliance” of certain provisions of the directions issued by the Reserve Bank of India (RBI). These include ‘Strengthening the control of payment mechanisms between sponsor banks and SCBs/UCBs as corporate customers’, ‘Cyber ​​Security Framework in Banks’ and ‘Reserve Bank of India (Financial Services to be Provided by Banks) Directions, 2016’. Are included. These also include ‘Financial Inclusion Banking Services Facility Primary Savings Bank Deposit Account’, and ‘Fraud Classification and Reporting’.


What will be the effect on customers?

This penalty has been imposed by RBI for “violation/non-compliance” of certain provisions of the directions issued. Which will have no effect on the customers. RBI clarified that this penalty has been imposed on banks for lack of regulatory compliance, it has nothing to do with any transaction of customers.

Parvesh Maurya
Parvesh Maurya
Parvesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ praveshmaurya24@gmail.com
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