RBI Penalizes Axis Bank, Bank of Maharashtra, and Jammu & Kashmir Bank for Non-Compliance

26 Jun 2023 , 01:13 PM

The Reserve Bank of India (RBI) has imposed monetary penalties on Axis Bank, Bank of Maharashtra, and Jammu & Kashmir Bank.

• Axis Bank has been fined Rs 30 lakh for non-compliance with RBI directions regarding credit card accounts.
• Bank of Maharashtra has faced a penalty of Rs 1.45 crore for loan sanctioning violations and failure to implement necessary control measures for ATMs.
• Jammu & Kashmir Bank has been charged a penalty of Rs 2.5 crore for non-compliance with loan disbursal regulations.

The penalties were imposed on June 22nd after inspections conducted by the RBI.

Axis Bank levied penal charges on credit card accounts despite customers paying on time through third-party platforms. The RBI issued a notice to Axis Bank and, after reviewing their response, imposed the penalty for non-compliance.

Bank of Maharashtra violated loan sanctioning rules and failed to implement the required encryption measures for ATMs. Jammu & Kashmir Bank did not comply with loan disbursal regulations.

The RBI’s actions emphasize the importance of adherence to regulatory guidelines and maintaining high compliance standards in the banking sector.

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