The Reserve Bank has imposed a hefty fine on two big private sector banks – Axis Bank and HDFC Bank. This fine has been imposed for not following the necessary rules.
The banking regulator has imposed a total fine of Rs 2.91 crore on Axis Bank and HDFC Bank.
Axis Bank fined Rs 1.91 crore
The Reserve Bank (RBI) said in a statement on Tuesday that Axis Bank violated some provisions of the Banking Regulation Act. Also, it did not follow some instructions on ‘interest rate on deposits’ and ‘know your customer (KYC)’ and ‘loan for agriculture’. Due to this, a fine of Rs 1.91 crore has been imposed on the bank.
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HDFC Bank will pay a fine of Rs 1 crore
In another statement, the central bank said that the largest private sector lender HDFC Bank did not follow certain instructions on ‘interest rates on deposits’, ‘recovery agents appointed by banks’ and ‘customer service in banks’. For this, it has been fined Rs 1 crore.
RBI also said that the fine has been imposed due to non-compliance of certain rules. It will not have any impact on the customers of the bank.
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