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The Reserve Bank of India (RBI), has imposed penalties on Axis Bank and Indian Overseas Bank of Rs.3 crore and Rs.2 crore, respectively, for not complying with RBI’s norms on classification of non-performing assets (NPAs) and know your customer (KYC).
RBI in two separate statements stated, “The Reserve Bank of India (RBI) has imposed, ob February 27,2018, a monetary penalty of Rs.30 million on Axis Bank Limited (the bank) for non-compliance with the directions issued by RBI on Income Recognition and Asset Classification (IRAC) norms… This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
The statutory inspection of the bank with reference to its financial position as on March 31,2016, disclosed inter alia, violations of various regulations issued by RBI in the assessment of NPAs.
