Mumbai – The Reserve Bank of India (RBI) has taken strict action against Axis Bank and Manappuram Finance, imposing monetary penalties of Rs 90.92 lakh and Rs 42.78 lakh, respectively. The penalties were imposed for violations of specific directions issued by the RBI.
The penalties were imposed for non-compliance with certain RBI directions, including ‘Reserve Bank of India (KYC) Directions, 2016’, ‘Loans and Advances – Statutory and Other Restrictions’, ‘Guidelines on Managing Risks and Code of Conduct in Outsourcing of Financial Services by banks’, and ‘Code of Conduct for Opening and Operating Current Accounts’. The RBI stated that the penalties were based on deficiencies in regulatory compliance, and were not intended to impact the validity of any transactions or agreements entered into by the banks with their customers.
In a separate statement, the RBI also imposed a monetary penalty of Rs 20 lakh on Anand Rathi Global Finance Ltd for non-compliance with certain provisions of the RBI’s ‘Know Your Customer (KYC) Directions, 2016’.
These penalties highlight the RBI’s commitment to enforcing compliance with its regulations in the banking and financial sectors. The penalties serve as a reminder to all financial institutions to adhere to the RBI’s directives and guidelines to avoid similar consequences in the future.
I have over 10 years of experience in the cryptocurrency industry and I have been on the list of the top authors on LinkedIn for the past 5 years. I have a wealth of knowledge to share with my readers, and my goal is to help them navigate the ever-changing world of cryptocurrencies.