Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹93 lakh on Axis Bank Ltd. by order dated April 07, 2022. The action was taken under section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949, after RBI found non-compliance with directions on loans and advances, financial services provided by banks, KYC, and penal charges on minimum balance shortfalls. The inspection noted deficiencies including inadequate margin for intraday stockbroker facilities, restrictive insurance-selling practices, lapses in verifying official documents with originals, multiple CIFs for customer IDs instead of UCIC, and disproportionate penal charges on savings account minimum balance shortfalls.