 "Axis Bank")
RBI slapped Rs 30-million fine on Axis Bank for flouting NPA norms and Indian Overseas Bank was fined Rs 20 million for KYC breach
The Reserve Bank of India (RBI) has fined private lender Axis Bank for violating RBI’s regulations for assessment of Non-Performing Assets (NPAs). The monetary penalty is for non-compliance with the directions issued by RBI on Income Recognition and Asset Classification (IRAC) in reference to Axis Bank’s financial position as on March 31, 2016.
The RBI also imposed a monetary penalty of Rs 20 million on Indian Overseas Bank for a fraud detected in one of its branches due to failure to comply with Know Your Customer (KYC) norms.
The central bank said that it imposed both fines on February 27, 2018. It added that the actions were “based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers”.
The regulator also said that it concluded that the aforesaid charges of non-compliance with RBI directions/ guidelines were substantiated and warranted imposition of monetary penalty after considering both the banks’ replies as well as the additional information and documents furnished.
