The Reserve Bank of India on 1 September imposed a monetary penalty of rupees twenty-five lakh on Axis Bank for violation of rules, the central bank said on Wednesday. The Reserve Bank of India (RBI) today imposed a monetary penalty of ₹ 25 lakh on Axis Bank for violation of rules. The RBI, in an order dated September 1, held Axis Bank responsible for failing to comply with certain provisions of Know Your Customer (KYC) norms.
The RBI carried out a scrutiny of Axis Bank during February 2020 and March 2020 in a customer account maintained with the bank and it was observed that the bank had failed to comply with the aforesaid directions issued by RBI, the regulator said. The bank failed to monitor/carry out ongoing due diligence in the said account to ensure that the transactions were consistent with its knowledge about the customer, customer’s business and risk profile,” it added. Subsequently, a notice was issued to the bank. After considering the bank’s reply, the RBI came to the conclusion that the charge of contravention of/non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty, to the extent of non-compliance with the aforesaid direction, the RBI said.
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