The Reserve Bank of India (RBI) has levied significant fines on two of the country’s leading private sector banks, Axis Bank and HDFC Bank, for disregarding crucial regulatory guidelines. This punitive action underscores the banks’ failure to comply with key directives, raising questions about the potential ripple effects on their customers.
Axis Bank and HDFC Bank have collectively been fined Rs 2.91 crore for non-compliance with essential rules. This stern move by the central bank puts the spotlight on the importance of adherence to regulatory norms in the banking sector.
Axis Bank Faces Rs 1.91 Crore Penalty
In a statement released on Tuesday, the RBI disclosed that Axis Bank had breached several provisions of the Banking Regulation Act. Additionally, the bank overlooked guidelines concerning ‘interest rate on deposits,’ ‘know your customer (KYC) norms,’ and ‘agricultural loans.’ As a result, the RBI imposed a fine of Rs 1.91 crore on the bank.
HDFC Bank Penalized Rs 1 Crore
Meanwhile, HDFC Bank, the largest private sector lender in India, was found guilty of violating instructions regarding ‘interest rate on deposits,’ the conduct of ‘recovery agents,’ and ‘customer service standards.’ Consequently, the bank has been fined Rs 1 crore for these lapses.
Although the RBI has taken stringent action, it clarified that these penalties pertain strictly to non-compliance with certain operational guidelines and will not impact the services provided to the banks’ customers.
