Yesterday, the Reserve Bank of India (RBI) has levied a penalty of US$461,313 on Axis Bank, one of India’s leading private bank for non-compliance of income recognition and asset classification (IRAC) norms.
RBI conducted a statutory assessment of Axis Bank with reference to its financial position as of March 31, 2016 and said that it found disparity in regulatory compliance.
The RBI said: “The statutory inspection of the bank with reference to its financial position as of March 31, 2016 revealed violations of various regulations issued by RBI in the assessment of Non-Performing Assets.”
“After considering the bank’s reply and oral submissions made in the personal hearing, RBI came to the conclusion that the aforesaid charges of non-compliance with RBI directions and guidelines were substantiated and warranted imposition of monetary penalty.”
Apart from Axis Bank, RBI also penalised Indian Overseas Bank with an amount of USD$307,292 for Know Your Customer (KYC) norms after a fraud was detected in one of its branches.