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RBI imposes fine on HDFC Bank and Axis Bank: The Reserve Bank of India has imposed a heavy fine on two top private sector banks. One of them is the country's top private bank HDFC Bank and the other is Axis Bank. RBI has taken action against both the banks for being negligent in following the rules set by RBI.
Two banks were given Rs. 2.91 crore fine and imposed
The Reserve Bank of India takes a tough stand on non-compliance of guidelines and keeps a close watch on all small and big banks and financial institutions. A total fine of Rs. 2.91 crore has been imposed on HDFC Bank and Axis Bank. This fine has been imposed on the banks for negligence in the services provided to the customers. This includes KYC, interest rates on deposits and other services.
Why fine on Axis Bank?
RBI has imposed a maximum fine of Rs 50 crore on Axis Bank, up to Rs 1.91 crore. This has been imposed for violating the provisions of Section 19 (1) (a) of the Banking Regulation Act, 1949 (BR Act). The penalty has also been imposed for not following certain guidelines related to agricultural loans including interest on deposits, KYC.
HDFC made this mistake
RBI has imposed a fine of Rs. 1 crore on HDFC Bank. The reason behind this is that HDFC Bank has been fined for not following the guidelines set for interest rates on deposits, bank related recovery agents and bank customer service.
Bank customers will not be affected
On whether the fines imposed on HDFC Bank and Axis Bank will affect consumers, RBI has clarified that this action is due to deficiencies in legal and regulatory compliance. This will not affect the validity of any transaction or contract made by the banks with their customers.
