The Reserve Bank of India fined Axis Bank, a private sector bank in India, about Rs 91 lakh. The reasoning for this is explained in detail.
The Reserve Bank of India has fined Axis Bank a total of Rs 90.92 lakh, making it the highest private sector bank in the nation. The central bank disclosed this in a news release on Thursday. According to the RBI, the reason for this action against Axis Bank is the bank’s failure to follow the RBI’s regulations.
Because of this, measures were taken against Axis Bank.
The Reserve Bank claims that Axis Bank was penalized for failing to comply with Know Your Customer (KYC) regulations. The bank has lost track of some clients’ personal information, including their names and addresses. After this, the RBI issued a punishment of Rs 90.92 lakh to the bank for not following the 2016 norms relating to KYC.
There was improper behavior by the recovery agents.
In addition, the Reserve Bank has discovered improper conduct on the part of several Axis Bank recovery agents who are tasked with recouping loan funds from borrowers. Following this, the RBI has given the bank a warning. The bank responded to this as well, but the Reserve Bank was still unsatisfied; therefore, the bank was fined.
Manappuram Finance was hit with a fine.
The Reserve Bank of India has taken action against both Axis Bank and Manappuram Finance, fining the two institutions a combined Rs 42.78 lakh. Non-Banking Finance Firm: Systemically Important Non-Deposit Taking Company and Deposit Taking Company Rules, 2016 have been broken, and this action has been taken against the offending finance firm.