The Reserve Bank of India (RBI) has imposed penalty on Axis Bank and IDBI Bank for non-compliance. The central bank has released information in this regard. Banks have been penalized for non-compliance with KYC guidelines and charges related to non-maintenance of minimum balance in savings bank account and specific guidelines to prevent fraud. RBI said a penalty of Rs 93 lakh has been imposed on Axis Bank and Rs 90 lakh on IDBI Bank.

the reason for which the fine was imposed

According to the Reserve Bank, Axis Bank was fined Rs. A fine of Rs 93 lakh has been imposed. According to the statement, the bank has violated certain provisions on loans and advances. Savings banks have not followed certain norms of levying penalty for non-maintenance of minimum balance in the accounts. IDBI Bank was fined for non-compliance with the instructions on ‘Fraud Classification and Reporting’. According to another release, IDBI Bank was also fined for violating cyber security norms. However, RBI clarified that all these penalties are based on loopholes in the rules and the decision will not affect any transaction or agreement entered into by the bank with any customer.

CCI probe against trustee units

Recently the Competition Commission has initiated investigation against the trustee unit of Axis Bank and IDBI Bank. Along with this, the trustee unit of SBI has also been named in the investigation. The CCI is probing the case of collusion in fees. Debt raising companies, as per rules, appoint a debenture trustee to protect the interests of investors who independently oversee the fund by charging fees. In fact, all the three trustees suddenly increased their fees, which has been rejected by the CCI.