Axis Bank and the gold loan company Manappuram Finance were fined Rs 90.92 lakh and Rs 42.78 lakh, respectively, by the RBI for breaking certain directives from the watchdog of the banking industry.
Axis Bank and the gold loan company Manappuram Finance were fined Rs 90.92 lakh and Rs 42.78 lakh, respectively, by the Reserve Bank for breaking certain directives from the watchdog of the banking industry. The fine was imposed due to non-compliance with the Reserve Bank of India (KYC) Directions, 2016; Guidelines on Managing Risks and Code of Conduct in Outsourcing of Financial Services by Banks; and Loans and Advances – Statutory and Other Restrictions, all issued by the RBI.
Axis Bank Limited was fined Rs 90.92 lakh by the Reserve Bank of India (RBI) on November 02, 2023, for failing to follow certain instructions.
The company received a notice stating that it needed to justify why it shouldn’t be penalized for disregarding the RBI’s instructions.
The RBI concluded that the charge of non-compliance with RBI directions was substantiated and justified the imposition of monetary penalty after taking into account the company’s response to the notice, additional submissions made by it, and oral submissions made during the personal hearing, it said.
In addition, Anand Rathi Global Finance Ltd. faces a monetary penalty of Rs 20 lakh from the apex bank for failing to comply with specific regulations stipulated in the RBI’s 2016 Know Your Customer (KYC) Directions.
The RBI determined that there was sufficient evidence to support the charge of non-compliance, which called for the imposition of a monetary penalty, after taking into account the Mumbai-based NBFC firm’s response to the notice and oral submission made during the personal hearing.
