Big news about the biggest private bank in our country, Axis Bank! The Reserve Bank of India (RBI) has given a penalty of Rs 90.92 lakh to Axis Bank.
On Thursday, the central bank shared this news in a statement. They mentioned that they took this action against Axis Bank because the bank did not follow the rules set by the RBI.
Action taken against Axis Bank for this reason
As per what the Reserve Bank shared, Axis Bank got in trouble because the bank didn’t do things right with Know Your Customer (KYC) rules.
This means the bank didn’t keep good records about who their customers are and where they live. The bank didn’t keep proper records of some customers’ names and addresses.
Because of this, the RBI charged the bank Rs 90.92 lakh for not following the rules about knowing their customers since 2016.
Recovery agents were not behaving properly
Besides that, the Reserve Bank noticed that some people working for Axis Bank, who try to get back money from customers who borrowed, are not acting properly.
After this, the RBI sent a message to the bank. The bank responded, but the Reserve Bank wasn’t happy with it, so they charged the bank a penalty.
Fine imposed on Manappuram Finance
Not just Axis Bank, but RBI also did something about Manappuram Finance. They charged them a total fine of Rs 42.78 lakh.
This happened because the finance company broke the rules of Non-Banking Finance Company-Systemically Important Non-Deposit Taking Company and Deposit Taking Company in 2016.
