RBI slaps penalties on Axis, IDBI Bank; will customers get impacted? Check here

New Delhi: Reserve Bank of India (RBI), on Friday (April 8), imposed a penalty of Rs 93 lakh each on Axis Bank and IDBI Bank. The penalty on Axis Bank has been imposed for various violations, including ones related to KYC guidelines. 

In a release, RBI said that the penalty of Axis Bank has been imposed for non-compliance with certain directions issued by the regulator. The central bank said that Axis Bank violated certain provisions on loans and advances, Know Your Customer (KYC) guidelines and 'levy of penal charges non-maintenance of minimum balances in savings bank accounts'. 

On the other hand, IDBI Bank has been penalised for non-compliance with directions on 'frauds - classification and reporting by commercial banks and select financial institutions', according to a PTI report.

The RBI has also fined IDBI Bank for violating norms on 'strengthening the controls of payment ecosystem between sponsor banks and corporate customers like SCBs/UCBs' and 'cyber security framework,' the regulator said in another release.

However, RBI has clarified that the penalties are based on deficiencies in regulatory compliance. Also, the fines are not intended to pronounce upon the validity of any transaction or agreement entered into by them with their respective customers, according to a PTI report. Also Read: Unacademy fires around 600 employees due to non-performance, redundancy: Report

As far as IDBI and Axis Bank customers are concerned, they don’t need to worry about the penalties. Both the banks will continue offering their services to the customers without any hiccups. Also Read: Sending late night emails? Microsoft boss Satya Nadella has a special message for you