Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 30 million on Axis Bank Limited on February 27, 2018. The penalty was levied for non-compliance with RBI directions on Income Recognition and Asset Classification (IRAC) norms, based on a statutory inspection that found violations in the assessment of Non-Performing Assets (NPAs). RBI issued a show-cause notice, considered the bank’s reply and oral submissions, and then concluded that the charges were substantiated, warranting the penalty under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 3.00 Cr
- Entity Type
- Bank
- Action Type
- Monetary penalty