RBI imposes Rs 25 lakh fine on Axis Bank for violating KYC rules

The Reserve Bank of India (RBI) has forced a financial punishment of Rs 25 lakh on private loan specialist Axis Bank for rebelliousness. The punishment was declared by the national bank on September 1.

The RBI said the fine was forced for resistance with specific arrangements of bearings issue by it in Reserve Bank of India — KYC Direction, 2016.

“The punishment has been forced in exercise of forces vested in RBI under arrangements of segment 47A(1)(c) read with area 46(4)(i) of the Banking Regulation Act, 1949 (the Act),” said an official statement gave by the national bank.

“This activity depends on the inadequacies in administrative consistence and isn’t expected to articulate upon the legitimacy of any exchange or arrangement went into by the manage an account with its clients,” it added.

Sharing foundation insights regarding the case, the RBI said it did investigation during February 2020 and March 2020 in a client account kept up with the bank, and it saw that Axis Bank had neglected to follow the bearings gave.

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