RBI penalises Axis Bank, IDBI Bank for non-compliance with regulatory norms

Reserve Bank of India (RBI) has imposed penalties worth ₹ 93 lakh and ₹ 90 lakh on Axis Bank and IDBI Bank respectively for deficiencies in regulatory compliance.

Simultaneously, the central bank has made it clear that the penalties in no way are a pronouncement on the validity of the institutions’ transactions with its customers.

The action was taken on IDBI Bank for non-compliance with directions issued by RBI on “Frauds – classification and reporting by commercial banks and select financial institutions”, “Strengthening the controls of payment ecosystem between sponsor banks and scheduled commercial banks as a corporate customer” and “Cyber security framework in banks”.

Axis Bank was penalised for not complying with certain directions issued by RBI on “Loans and Advances – Statutory and Other Restrictions”, “Reserve Bank of India (Financial Services provided by Banks) Directions, 2016”, “Reserve Bank of India KYC Directions 2016” and “Levy of penal charges on non-maintenance of minimum balances in savings bank accounts”.