RBI slaps fines on Axis Bank, Manappuram Finance

Reserve Bank on Thursday imposed a monetary penalty of Rs 90.92 lakh on Axis Bank and Rs 42.78 lakh on gold loan firm Manappuram Finance for violation of certain directions of banking sector regulator.

fine has been imposed for n-compliance with certain directions issued by RBI on 'Reserve Bank of India (KYC) Directions, 2016', 'Loans and vances  Statutory and Or 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', central bank said in a statement.

Reserve Bank of India (RBI) by an order dated vember 02, 2023, imposed a monetary penalty of Rs 90.92 lakh on Axis Bank Ltd for n-compliance with certain directions.

"This action is based on deficiencies in regulatory compliance and is t intended to prounce upon validity of any transaction or agreement entered into by bank with its customers," it said.

In a separate statement, RBI said it has imposed a monetary penalty of Rs 42.78 lakh on Thrissur-based Manappuram Finance for n-compliance with certain provisions of "n-Banking Financial Company - Systemically Important n-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016".

A tice was issued to company vising it to show cause as to why a penalty should t be imposed on it for failure to comply with RBI directions, it said.

After considering company's reply to tice, ditional submissions me by it and oral submissions me during personal hearing, RBI came to conclusion that charge of n-compliance with RBI directions was substantiated and warranted imposition of monetary penalty, it said.

apex bank also has imposed a Rs 20 lakh monetary penalty on Anand Rathi Global Finance Ltd for n-compliance with certain provisions of RBI (Kw Your Customer (KYC) Directions, 2016.

After considering Mumbai-based NBFC firm's reply to tice and oral submission me during personal hearing, RBI concluded that charge of n-compliance was substantiated and warranted imposition of a monetary penalty.