RBI imposes penalty on Axis Bank and IDBI Bank for non-compliance of rules
RBI Penalty: The Reserve Bank has informed that a penalty of Rs 93 lakh has been imposed on Axis Bank and Rs 90 lakh on IDBI Bank. This action was taken by the banks for not following some rules of the Reserve Bank.
Axis Bank (Axis Bank) and today on IDBI Bank reserve Bank ,RBI) announced the imposition of fines for non-fulfilment of different rules. The central bank has given this information today. KYC guideline on banksKYC guidelines) And a penalty has been imposed for non-fulfillment of the rules regarding charges to be levied for non-maintenance of minimum balance in savings bank account and special guidelines for protection from frauds. The Reserve Bank has informed that a penalty of Rs 93 lakh has been imposed on Axis Bank and Rs 90 lakh on IDBI Bank.
for what reason the fine
According to the Reserve Bank, a penalty of Rs 93 lakh has been imposed by Axis Bank for non-compliance of certain instructions issued by the RBI, according to the statement issued by the bank, the bank violated certain provisions on loans and advances, as well as its customers. Did not comply with certain norms related to levy of penal charges for non-maintenance of minimum balance in savings bank accounts, Know Know (KYC) guidelines. IDBI Bank was penalized for non-compliance with the instructions on ‘Classification and Reporting of Frauds’. According to another release, IDBI Bank was also fined for violating norms regarding cyber security. However, along with this, the Reserve Bank made it clear that all these penalties are on the basis of deficiencies in the rules and this decision will not have any effect on any transaction or agreement with any customer by the bank.
CCI probe against trustee units
Earlier, recently the Competition Commission has started investigation against the Trustee Unit of Axis Bank and IDBI Bank. Apart from these, the trustee unit of SBI is also named in the investigation. CCI is doing this investigation in the case of collusion regarding fees. As per the rules, debt-raising companies appoint debenture trustees to protect the interests of investors, who independently monitor the funds by charging a fee. In fact, all the three trustees suddenly increased their fees, which the CCI has considered wrong from the point of view of competition.
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