RBI slaps Rs 2.91 crore penalty on Axis Bank and HDFC Bank

Mumbai: The Reserve Bank of India (RBI) has imposed penalties totalling Rs 2.91 crore on Axis Bank and HDFC Bank for certain deficiencies in statutory and regulatory compliance. In a statement on Tuesday, the RBI said that a penalty of Rs one crore has been imposed on HDFC Bank for non-compliance with certain directions on 'interest rate on deposits', 'recovery agents engaged by banks' and 'customer service in banks'.

Similarly, it imposed a penalty of Rs 1.91 crore on Axis Bank for contravention of certain provisions of the Banking Regulation Act, and non-compliance with certain directions on 'Interest Rate on Deposits', 'Know Your Customer (KYC)' and 'Credit Flow to Agriculture-Collateral free agricultural loans'.