RBI Forced RS 5 Crore Penalty at Axis Bank

Mumbai: Reserve Bank of India (RBI) on Tuesday said he had imposed a Penalty Rs 5 Crore at the Axis Bank to contradict certain provisions from the direction issued by the RBI, including the Siber framework.
Punishment has been charged for “suspension / non-compliance” with certain provisions of the direction issued by the RBI.
They include ‘strengthening control of payment ecosystems between sponsor banks and SCB / UCB as corporate customers’; ‘Cyber ​​security framework in the bank’; and ‘Reserve Bank of India (Financial Services Provided by Bank) Directions, 2016’.
They also include ‘Financial Inclusion Access to Banking Services – Basic Account of Bank Savings’; and ‘fraud-classification and reporting’.
RBI said the inspection of the law for the Bank’s Supervisory Evaluation (ISE) was carried out by referring to its financial position on March 31, 2017, (ISE 2017), March 31, 2018, (ISE 2018), and March 31, 2019 (ISE 2019).
Sequence / non-compliance with direction has been expressed by the examination of risk assessment reports related to ISE 2017, ISE 2018 and ISE 2019; Supervision reports are carried out by the RBI in the background of incidents related to fraud and related correspondence; And the incident report submitted by the Bank in June 2020 is related to several alleged transactions and related correspondence.
Notifications issued to the bank advise to show the reason why penalty should not be imposed because of failure to comply with instructions.
After considering bank replies, mouth filing and additional submission conducted by the Bank, the RBI came to the conclusion that allegations of non-compliance with / contrary to direction are proven and guarantee monetary penalty, the central bank is said.
However, RBI added penalty penalty based on deficiencies in regulatory compliance and was not intended to be pronounced on the validity of each transaction or agreement entered by customers with customers.
Meanwhile, the RBI also imposed a RS 5 Lakh penalty on the Alibag Co-Operative Urban Bank Limited, Raigad, and Rs 1 Lakh at Urban Cooperative Bank Mahabaleshwar Limited, Mahabaleshwar, for the lack of compliance with regulations.