Axis Bank slips ~3% as RBI slaps penalty of Rs 91 lakh

17 Nov 2023 , 11:58 AM

The Reserve Bank of India (RBI) announced on November 16 that it has levied a monetary penalty of Rs 90.93 lakh on Axis Bank for failing to follow certain instructions.

Following this development, the company’s counter plunged as much as 2.91% to Rs 996.50, against the previous close of Rs 1,026.35 on NSE.

In a statement, the RBI said that ‘Certain directions issued by RBI on ‘Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016’, ‘Loans and Advances – Statutory and Other Restrictions’, ‘Guidelines on Managing Risks and Code of Conduct in Outsourcing of Financial Services by banks’ and ‘Code of Conduct for Opening and Operating Current Accounts’.’

This penalty was imposed in the exercise of powers conferred on the RBI by Section 47 A (1) (c) read with Section 46 (4) (i) of the Banking Regulation Act, 1949, the RBI stated.

The RBI further stated that the bank’s Statutory Inspection for Supervisory Evaluation (ISE 2022) was undertaken with regard to its financial situation as of March 31, 2022.

Furthermore, the RBI stated that in certain circumstances, the bank neglected to save data relevant to client identities and addresses.

The statement further highlighted that it, “made deliberate calls to some of the customers, failed to keep a check on behaviour of recovery agents with some of the defaulting clients and failed to keep a record of the content/text of the calls made by the recovery agent to some of the customers.”

For feedback and suggestions, write to us at [e-mail]