Mumbai: RBI on Wednesday said that it has imposed a 25 lakh RS penalty on Axis Bank limited to contrary to certain provisions of your customer’s norm (KYC).
RBI said a supervision was carried out during February and March 2020 on a customer account that was maintained with Axis Bank, and was observed that the Bank had “failed to comply” with the direction contained in the direction of Bank Reserves India – KYC, 2016.
“…
Bank failed to monitor / Conduct a thorough test on the account to ensure that transactions are consistent with their knowledge about customers, customer businesses and risk profiles, “he said in a statement.
Notifications issued to the bank, advise to show the reason why punishment should not be charged to conflict with direction.
After considering a reply to the oral notification and submission carried out during personal hearing, RBI said “to the conclusion that the allegations of prevention / non-compliance with the direction of the RBI mentioned above were proven” and guarantee monetary penalty.
However, RBI added that the penalty was based on the lack of obedienceal compliance and was not intended to be pronounced on the validity of each transaction or agreement entered by customers with its customers.