The Reserve Bank of India, taking significant action on the country’s largest private sector bank, Axis Bank, has imposed a fine of Rs 90.92 lakh on it. The central bank gave this information in a press release on Thursday. The central bank said that this action has been taken on Axis Bank due to non-compliance with the rules made by RBI.
Action Taken Against Axis Bank For This Reason
According to the information from the Reserve Bank, this action has been taken on Axis Bank because the bank did not follow the rules of Know Your Customer (KYC). The bank has failed to maintain records of some customers’ identity and address details. After this, RBI imposed a fine of Rs 90.92 lakh on the bank for not following the 2016 guidelines related to KYC.
Recovery Agents Were Not Behaving Properly
Apart from this, the Reserve Bank has also found that some recovery agents of Axis Bank are not behaving correctly while recovering loans from customers. After this, a notice has been issued to the bank by RBI. The bank also replied to this, but the Reserve Bank was not satisfied with this, and after this, a penalty was imposed on the bank.
Fine Imposed On Manappuram Finance
Apart from Axis Bank, RBI has also taken action on Manappuram Finance and imposed a total fine of Rs 42.78 lakh. This action has been taken against this finance company due to violating the rules of Non-Banking Finance Company-Systemically Important Non-Deposit Taking Company and Deposit-Taking Company 2016.
