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RBI has imposed a penalty of Rs 90.92 lakh on Axis Bank

Published on November 18, 2023
Current Context: The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 90.92 lakh on Axis Bank for various violations, including those related to KYC guidelines.
RBI has imposed a penalty of Rs 90.92 lakh on Axis Bank
  • This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
  • The penalty was imposed for the following reasons:
    • The bank did not maintain the prescribed margin in case of intraday facilities sanctioned to stockbrokers.
    • The bank followed restrictive practices in the sale of insurance products to customers.
    • The bank failed to verify the copy of officially valid documents so produced by the clients, with the originals, while establishing account-based relationships.
    • There were instances of customer IDs having multiple CIFs instead of a Unique Customer Identification Code (UCIC).
    • The bank levied penal charges for non-maintenance of minimum balance in savings bank accounts, not directly proportionate to the extent of the shortfall observed.
  • The central bank has also imposed a fine of Rs 90 lakh on IDBI Bank.

Question:

Q.1 What is the amount of the penalty imposed by the RBI on Axis Bank?
a. Rs.90 Lakh
b. Rs.90.92 Lakh
c. Rs.95 Lakh
d. Rs.98 Lakh
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