RBI fines HDFC, Axis Bank for non-compliance with regulations

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11.09.2024 - 04:36

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economictimes.indiatimes.com:

Reserve Bank of India has imposed a penalty of ₹1.91 crore on Axis Bank and ₹1 crore on HDFC Bank for non-compliance with regulations. Both banks opened certain savings deposit accounts in the name of ineligible entities.

The monetary penalty on Axis Bank pertains to violations done in FY23. The bank allotted multiple customer identification codes to certain customers instead of a unique customer identification code for each customer and obtained collateral security for agricultural loans up to ₹1.60 lakh in certain cases. Besides, Axis Bank's wholly-owned subsidiary undertook business as a technology service provider, which is a violation of the Banking Regulation Act.

The penalty on HDFC Bank pertains to FY22. HDFC Bank gave over ₹250 as gifts to depositors while accepting certain deposits. The gift was in the nature of the first-year premium for the complimentary life insurance cover. The bank failed to ensure customers were not contacted after 7 p.m. and before 7 a.m.

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