The Reserve Bank of India (RBI) imposed, by an order as on 7 April 2022, a monetary penalty of Rs 93 lakh on Axis Bank for the non-compliance of certain directions issued by RBI.
The Reserve Bank of India (RBI) imposed, by an order as on 7 April 2022, a monetary penalty of Rs 93 lakh on Axis Bank for the non-compliance 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 (Know Your Customer (KYC)) Directions, 2016', and 'Levy of penal charges on non-maintenance of minimum balances in savings bank accounts'. This penalty has been imposed in exercise of powers vested in RBI under the provisions of section 47 A (1) (c) read with section 46 (4) (i) of the Banking Regulation Act, 1949 (the Act).
As per RBI's press release, this action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
Shares of Axis Bank fell 0.92% to Rs 787.55 on BSE. Axis Bank is the third-largest private sector bank in India. With its 4,700 domestic branches (including extension counters) and 11,060 ATMs across the country as on 31st December 2021, the network of Axis Bank spreads across 2,665 centers.
The private sector bank's net profit increased by 224% to Rs 3,614 crore on 9.48% increase in total income to Rs 21,101.48 crore in Q3 December 2021 over Q3 December 2020.
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