RBI Fines Axis Bank and HDFC Bank Rs 2.91 Crore for Compliance Failures
Issues included opening accounts for ineligible entities and improper collateral handling.
India's central bank and regulatory body - Reserve Bank of India.
The Reserve Bank of India (RBI) has imposed penalties totaling Rs 2.91 crore on Axis Bank and HDFC Bank for regulatory lapses.
Axis Bank faces a Rs 1.91 crore fine for violations related to ‘Interest Rate on Deposits,’ ‘KYC,’ and ‘Collateral-Free Agricultural Loans.’
Issues included opening accounts for ineligible entities and improper collateral handling.
HDFC Bank is fined Rs 1 crore for failing to follow guidelines on ‘Interest Rate on Deposits,’ ‘Recovery Agents,’ and ‘Customer Service,’ including offering gifts like life insurance premiums and contacting customers outside permissible hours.
The RBI stated these penalties address regulatory non-compliance and are not an evaluation of transaction validity.
Further actions against the banks may follow.
