September 11, 2024: The Reserve Bank of India (RBI) has announced fines totaling Rs. 2.91 crore for Axis Bank and HDFC Bank due to lapses in regulatory compliance.

Axis Bank has been penalized Rs. 1.91 crore for breaching several provisions of the Banking Regulation Act. The violations include failures in adhering to directives on 'Interest Rate on Deposits', 'Know Your Customer' (KYC) protocols, and rules for 'Credit Flow to Agriculture', specifically related to collateral-free agricultural loans. This penalty follows a supervisory review of Axis Bank’s financial status as of March 31, 2023, and an examination of its subsidiary's operations.

HDFC Bank has been fined Rs. 1 crore for non-compliance with directives concerning 'Interest Rate on Deposits', the management of 'Recovery Agents', and 'Customer Service Standards'.

The RBI's actions emphasize its commitment to upholding regulatory standards and ensuring that banks comply with all necessary regulations.