RBI slaps Rs 91L fine on Axis Bank for breach of norms

Mumbai: Reserve Bank of India (RBI) on Thursday said that it has imposed a penalty of Rs 90.93 lakh on Axis Bank for breach of norms.

The breach relates to directions issued by RBI on Know Your Customer (KYC) norms, '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'."

The RBI carried out the Statutory Inspection for Supervisory Evaluation of the bank was conducted by RBI with reference to its financial position as of March 31, 2022.

A scrutiny was also conducted by RBI involving an account.

In addition, the bank failed to preserve records pertaining to the identification of customers and their addresses in certain cases.

"Made persistent calls to some of the customers, failed to ensure appropriate behaviour of recovery agents with some of the delinquent borrowers and failed to ensure a tape recording of the content/text of the calls made by the recovery agents to some of the customers," the RBI statement said.