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New Delhi: The Reserve Bank of India (RBI) on Friday (April 8) imposed a fine of Rs 93 lakh on Axis Bank and IDBI Bank. Axis Bank has been fined for various violations related to KYC guidelines.

In a release, RBI said that Axis Bank has been fined for non-compliance of certain directions issued by the regulator. The central bank said that Axis Bank has violated certain provisions of loans and advances, Know Your Customer (KYC) guidelines and ‘imposition of penal charges for non-maintenance of minimum balance in savings bank accounts’.

 

IDBI Bank, on the other hand, has been penalized for non-compliance with directions on ‘Fraud – Classification and Reporting by Commercial Banks and Select Financial Institutions’, according to a report in PTI.

In another release, the regulator said that the RBI also fined IDBI Bank for “strengthening the control of the payments ecosystem among sponsor banks and corporate customers such as SCBs/UCBs” and for violating the norms of “cyber security framework”. Is.

 

However, RBI has clarified that the penalty is based on deficiencies in regulatory compliance. According to a report by PTI, the penalty is not intended to pronounce upon the validity of any transaction or agreement entered into by them with their respective customers.

 

As far as IDBI and Axis Bank customers are concerned, they need not worry about fines. Both the banks will continue to offer their services to the customers without any interruption.

Source