RBI slaps penalty on Axis Bank, IDBI Bank

BBN Bureau

Axis attracted Rs9.3 mn in fine, IDBI Bank’s was Rs9 mn

MUMBAI/April 08-2022: The Reserve Bank of India (RBI) has slapped monetary penalties on the leading private lender, Axis Bank and IDBI Bank, according to an official release issued by the Reserve Bank of India (RBI) on Friday.

While the penalty on Axis Bank was Rs93 lakh, that slapped on IDBI Bank was Rs90 lakh, the release added.

Penalty was imposed on Axis Bank for non-compliance with the directions issued by RBI on loans & advance, KYC guidelines, and non-maintenance of minimum balance in savings accounts.

RBI said Axis Bank violated certain norms by not maintaining the prescribed margin in case of intraday facilities sanctioned to stockbrokers.

It was also stated that Axis Bank had followed restrictive practices in the sale of insurance products to customers, failed to verify the copy of officially valid documents so produced by the clients with the originals, while establishing account-based relationships.

IDBI case

In the case of IDBI Bank, RBI said the lender reported frauds with delay and submitted flash reports in respect of frauds involving an amount of Rs5 crore and above to RBI with delay.

RBI said the bank had failed to implement time restrictions on holidays and data access control for corporate net banking to put through fund transfers resulting in unauthorised debit transactions in the account of two co-operative banks.

While Axis Bank shares closed 0.50 per cent up at Rs796.10 on NSE, IDBI bank shares lost 0.21 per cent in Friday’s trading before closing at Rs47.65