The Central Reserve Bank has imposed a penalty on private sector Axis Bank and IDBI Bank. Axis Bank has been fined Rs 93 lakh and IDBI Bank has been fined Rs 90 lakh. Accordingly, a total fine of Rs 1.83 crore has been imposed.
In the case of Axis Bank, the action has been taken for non-compliance with RBI guidelines on loans and advances, KYC guidelines and penalty for non-maintenance of minimum balance in savings accounts. RBI said that Axis Bank has violated certain norms by not maintaining the prescribed margin in respect of intraday facilities extended to stock brokers.
Whereas, in the case of IDBI Bank, the RBI said that the lender reported the fraud with a delay. At the same time, flash reports in respect of frauds amounting to Rs 5 crore and above were delayed and submitted to RBI and failed to enforce time restrictions on holidays and data access controls for corporates.
Read this-3 companies of Adani group got big investment, competed to buy shares
RBI had issued notices to both the banks advising them to show cause as to why penalty should not be imposed on them for non-compliance of the instructions. Shares of Axis Bank on Friday closed 0.5 per cent higher at Rs 796.10 on the NSE, while IDBI Bank shed 0.21 per cent to close at Rs 47.65.