Axis Bank is not having a good day. RBI has once again imposed a penalty on the bank. Know why this fine has been imposed and what will be its effect.
New Delhi: Axis Bank Penalty: The Reserve Bank of India (RBI) has imposed a fine of Rs 25 lakh on Axis Bank. Giving information about the penalty, the Reserve Bank said that Axis Bank has violated the rules of Know Your Customer (KYC) Directions, 2016 and for this reason this penalty has been imposed.
Axis Bank was fined because of this
The Reserve Bank said that during February and March, 2020, the account of an Axis Bank customer was verified. In the investigation, it was found that Axis Bank has failed to comply with the provisions contained in the instructions issued by the Reserve Bank regarding KYC, 2016. This means that Axis Bank could not do due diligence of its customer accounts and could not know the business and risk profile of the customers.
What will be the effect on Axis Bank
After this investigation, RBI gave 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. Now the question arises that what will be the effect of this fine on the functioning of Axis Bank. On this, RBI said that this penalty has been imposed due to non-compliance of the rules of the regulator. This will not have any effect on the transaction of the bank.
Axis Bank was also fined earlier
Let us tell you that earlier in July also RBI had imposed a fine of Rs 5 crore on Axis Bank. The central bank took this action on Axis Bank for violating certain provisions of its instructions. Axis Bank has been accused of violating the Reserve Bank’s norms, which include ‘strengthening control of the payment mechanism 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.