Case Brief
What Happened
By an order dated September 3, 2024, RBI imposed a monetary penalty of ₹1.91 crore on Axis Bank Limited. The penalty followed an inspection and supervisory review that found the bank had opened certain savings deposit accounts in the name of ineligible entities, allotted multiple customer identification codes instead of a UCIC for some customers, obtained collateral security for agricultural loans up to ₹1.60 lakh in some cases, and had a wholly owned subsidiary carry on technology service provider business, which is not permissible for a banking company under Section 6 of the BR Act. RBI said the action was taken under Section 47A(1)(c) read with Section 46(4)(i) of the BR Act for contravention of Section 19(1)(a) and non-compliance with RBI directions on deposits, KYC, and collateral-free agricultural loans.