RBI imposed penality of 3 crore on Axis Bank, 2 cr on IOB

Vastavam web: The Reserve Bank today said it has imposed a penalty of Rs 3 crore on Axis Bank for violation of NPA classification norms, and Rs 2 crore on Indian Overseas Bank for not complying with the KYC regulations.RBI said it had carried out a statutory inspection of private sector player Axis Bank with reference to its financial position as on March 31, 2016.”The RBI has imposed, on February 27, 2018, a monetary penalty of Rs 30 million on Axis Bank Limited for non-compliance with the directions issued by RBI on Income Recognition and Asset Classification (IRAC) norms,” it said.

Regarding the state-owned Indian Overseas Bank, the regulator said in a separate release that a “fraud was detected” in one of the branches of the bank.”The examination of the documents, including the bank s internal inspection report, revealed, inter alia, non-compliance with the directions issued by RBI on Know Your Customer (KYC) norms”, RBI said, while imposing the Rs 2 crore penalty on IOB.