The Reserve Bank of India (RBI) has imposed monetary penalties on Axis Bank and Manappuram Finance for failing to comply with certain banking sector regulations.
The RBI fined Axis Bank Rs 90.92 lakh and Manappuram Finance Rs 42.78 lakh for non-compliance with directives related to KYC, loans and advances, risk management, and code of conduct for operating current accounts.
According to the RBI, the penalties were imposed “based on deficiencies in regulatory compliance” and are not intended to invalidate any transactions or agreements between the penalized institutions and their customers.
In a separate statement, the RBI announced a Rs 20 lakh monetary penalty on Anand Rathi Global Finance Ltd for non-compliance with certain provisions of the RBI’s KYC Directions, 2016.
After reviewing the responses and oral submissions from the penalized institutions, the RBI concluded that the charges of non-compliance were substantiated, warranting the imposition of monetary penalties.
These actions the RBI underscore the importance of regulatory compliance within the banking and financial sectors. It serves as a reminder to all institutions to adhere to the directives and guidelines set forth the central bank to maintain the integrity and stability of the financial system.