RBI imposes 19.1-mln-rupee penalty on Axis Bank for non-compliance
This story was originally published at 19:41 IST on 10 September 2024
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--RBI: Imposed 19.1-mln-rupee penalty on Axis Bank
--RBI: Penalised Axis Bank for non-compliance with deposit rate norms
--RBI: Penalised Axis Bank for non-compliance with certain KYC norms
MUMBAI – The Reserve Bank of India has imposed a penalty of 19.1 mln rupees on Axis Bank for non-compliance of certain regulatory provisions on deposit rates, 'know your customer', and 'Credit Flow to Agriculture-Collateral free agricultural loans', the central bank said in a press release today.
The RBI penalised the bank for opening certain savings deposit accounts in the name of ineligible entities. The central bank also charged the bank for allotting multiple customer identification codes to certain customers instead of allotting a Unique Customer Identification Code to each customer.
The bank was also charged for obtaining collateral security for agricultural loans up to 160,000 rupees in certain cases. Further, a wholly owned subsidiary of Axis Bank undertook the business of a technology service provider, which is not permissible business that can be undertaken by a banking company under Section 6 of the Banking Regulation Act, the RBI said.
The penalty was imposed after considering the bank's responses to a show-cause notice, the RBI said.
On the National Stock Exchange, shares of Axis Bank closed 1.4% higher at 1,187.20 rupees. The RBI release was posted after-market hours. End
Reported by Cassandra Carvalho
Edited by Ashish Shirke
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