Axis Bank Edges Lower After RBI Imposes Penalty For Violation Of Rules

Axis Bank failed to monitor the ongoing due diligence in a particular account to ensure that the transactions were consistent with its knowledge about the customer, RBI said

Axis Bank shares edged lower in earlier trading a day after the Reserve Bank of India (RBI) imposed a monetary penalty of Rs 25 lakh for violation of rules. The RBI, in an order dated September 1, held Axis Bank responsible for failing to comply with certain provisions of Know Your Customer (KYC) norms. At 10:10 am, Axis Bank shares were trading at Rs 795, lower by 0.44 per cent, on the BSE. During February 2020 and March 2020, RBI carried out a scrutiny in a customer account maintained with the leading private bank. Axis Bank failed to monitor the ongoing due diligence in the particular account to ensure that the transactions were consistent with its knowledge about the customer, customer's business and risk profile, the banking regulator said in a statement. The penalty is based upon the deficiencies in regulatory compliance and will not impact the validity of any transaction or agreement entered into by Axis Bank with its customers, RBI clarified.