The central bank has also slapped a fine of Rs 90 lakh on IDBI Bank.
A monetary penalty of Rs 93 lakh has been imposed on Axis Bank for non-compliance of certain directions issued by RBI, the regulator said in a release.
The private sector lender violated certain provisions on loans and advances, Know Your Customer (KYC) guidelines and ‘levy of penal charges non-maintenance of minimum balances in savings bank accounts’, it added.
IDBI Bank has been penalised for non-compliance of directions on ‘frauds – classification and reporting by commercial banks and select financial institutions’.
It was also fined for violating norms on ‘strengthening the controls of payment ecosystem between sponsor banks and corporate customers like SCBs/UCBs’ and ‘cyber security framework,’ according to another release.
RBI, however, said the penalties are based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by them with their respective customers.