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RBI imposes fine of Rs 25 lakh on Axis Bank, the bank violated KYC rules

The days of Axis Bank are not going well. The RBI has once again imposed fines on the bank. Find out why this fine has been imposed and what the effect will be.

New Delhi: Axis Bank Penalty: The Reserve Bank of India (RBI) has imposed a fine of Rs 25 lakh on Axis Bank. Informing about the fine, the Reserve Bank stated that Axis Bank has violated the rules of Know Your Customer (KYC) Directive, 2016 and that is why this penalty has been imposed.

Axis Bank was therefore fined
The Reserve Bank stated that the account of a customer of Axis Bank was checked during February and March, 2020. The investigation found that Axis Bank had failed to comply with the provisions of the Reserve Bank’s instructions regarding KYC, 2016. This means that Axis Bank could not do due diligence of its customer accounts and did not know the business and risk profile of the customers.

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What will be the effect on Axis Bank?
Following this investigation, the RBI issued a notice to the bank in this regard. After considering the response to the notice and the verbal explanation, decided to impose a fine. Now the question arises as to what effect this penalty will have on the functioning of Axis Bank. The RBI stated that the fine was imposed for non-compliance with the rules of the regulator. This will not affect the bank’s transactions.

Axis Bank had earlier been fined
Let me tell you that earlier in July also, RBI had imposed a fine of Rs. 5 crore on Axis Bank. The central bank had imposed the fine on Axis Bank for violating certain provisions of its directives. Axis Bank has been accused of violating RBI rules, including ‘strengthening the control of the payment mechanism between the sponsoring banks and SCB / UCB as a corporate customer’, ‘cyber security framework in banks’ and’ RBI (Financial Services Provided by Banks) Instructions, 2016 ‘.

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