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Reserve Bank Of India (RBI) Imposes Penalty Of Rs 25 Lakh On Axis Bank For Violation Of Norms

RBI Imposes Rs 25 Lakh Penalty On Axis Bank For Violating Norms

RBI imposed the penalty on Axis Bank because of violation of sure guidelines

The Reserve Bank of India (RBI) in the present day imposed a financial penalty of Rs 25 lakh on Axis Bank for violation of guidelines. The RBI, in an order dated September 1, held Axis Bank liable for failing to adjust to the provisions of  Reserve Bank of India – (Know Your (*25*) (KYC)) Direction, 2016.

The banking regulator carried out scrutiny throughout February 2020 and March 2020 in a buyer account maintained with the main non-public financial institution. RBI noticed that Axis Bank had did not adjust to the instructions issued by it because it did not monitor or perform ongoing due diligence within the explicit account to make sure that the transactions had been in keeping with its information concerning the buyer, buyer’s enterprise, and threat profile.

Subsequently, RBI issued a discover to Axis Bank, asking why the penalty shouldn’t be imposed on it for the contravention of the instructions.

After contemplating the reply to the discover and the verbal submissions made through the private listening to, the RBI mentioned it “came to the conclusion that the charge of contravention of/non-compliance with the aforesaid RBI directions was substantiated” after which imposed the financial penalty. 

However, the RBI added that the penalty is predicated upon the deficiencies in regulatory compliance and won’t affect the validity of any transaction or settlement entered into by Axis Bank with its prospects.

On Wednesday, September 1, shares of Axis Bank settled 1.54 per cent greater at Rs 798.50 apiece on the BSE. Axis Bank opened on the BSE at Rs 796, swinging to an intra day excessive of Rs 819. and an intra day low of Rs 795.95, all through the buying and selling session up to now. 

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