Reserve Bank of India (RBI) has imposed penalties worth Rs 93 lakh and Rs 90 lakh on Axis Bank and IDBI Bank respectively for deficiencies in regulatory compliance.
At the same time, 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".
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