RBI Impose Penalty On Two Banks: Reserve Bank of India has imposed a fine of crores of rupees on private sector HDFC Bank-Axis Bank for non-compliance of the rules. Along with this, a press release has also been issued about the impact on the customers.
The Reserve Bank of India (RBI) has imposed a huge fine on two big banks. The first of these is the country’s largest private sector bank HDFC Bank and the second is Axis Bank. This action has been taken by the Reserve Bank on both the banks in the case of negligence in complying with the rules set by the central bank. In such a situation, if you also have an account in these banks, then this news is very important for you. RBI has shared information in this regard by issuing a press release.
Fine of Rs 2.91 crore on both banks
The Reserve Bank continues to be strict on all such small and big banks, which are negligent in complying with the guidelines. Talking about the latest case, the central bank has imposed a total fine of Rs 2.91 crore on HDFC Bank and Axis Bank. RBI has said that this action of fine has been taken after the cases of negligence in the services provided by the banks to the customers came to light. This also includes KYC, interest rates on deposits and other matters.
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Why was Axis Bank fined?
If we look at the press release issued by RBI, the Reserve Bank has imposed the highest penalty on private sector Axis Bank, which is Rs 1.91 crore. It has been said that this penalty has been imposed for violating the rules of Section 19 (1) (A) of the Banking Regulation Act, 1949 (BR Act). Apart from this, a heavy fine has been imposed on Axis Bank for not following some instructions related to interest rate on deposits, KYC and agriculture loans.
Where did HDFC Bank go wrong
Now let’s talk about RBI’s action on HDFC Bank, the country’s largest private sector bank. The central bank has imposed a fine of Rs 1 crore on HDFC Bank. The press release said that here too, action has been taken to impose a fine on HDFC Bank for not following the guidelines set for interest rates on deposits, recovery agents associated with the bank and bank customer service.
No impact on bank customers
Along with the information about this action of fine on HDFC Bank and Axis Bank, RBI has also clarified the picture about the impact it will have on the customers of the banks. RBI has said that this action has been taken due to deficiencies in statutory and regulatory compliance. This will not affect the validity of any transaction or agreement made by the banks with their customers.
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