Tue Sep 10 16:24:00 UTC 2024: ## RBI Fines Axis Bank and HDFC Bank for Regulatory Non-Compliance
**Mumbai:** The Reserve Bank of India (RBI) has imposed penalties on Axis Bank and HDFC Bank for violating various banking regulations. Axis Bank was fined Rs 1.91 crore for noncompliance with provisions related to deposit interest rates, Know Your Customer (KYC) norms, and collateral-free farm loans. HDFC Bank received a Rs 1 crore penalty for failing to adhere to guidelines regarding deposit interest rates, deployment of recovery agents, and customer service rules.
The RBI’s investigation revealed that Axis Bank opened savings bank accounts for ineligible entities and assigned multiple identification codes to some customers instead of unique codes. The bank was also found to have taken collateral exceeding the permitted limit on certain agricultural loans and allowed a subsidiary company to operate beyond its authorized scope.
HDFC Bank was penalized for offering excessive discounts on life insurance premiums, opening savings bank accounts for ineligible entities, and violating customer service guidelines regarding call times.
The penalties were imposed after the banks failed to provide satisfactory explanations in response to show-cause notices issued by the RBI. The central bank’s action highlights the importance of adhering to regulations and underscores its commitment to ensuring a safe and secure banking system.
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