RBI imposes monetary penalty on Axis Bank Limited

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹5 crore on Axis Bank Limited by an order dated July 28, 2021. RBI found contraventions and non-compliance with multiple directions, including those on strengthening controls of the payment ecosystem between sponsor banks and SCBs/UCBs as a corporate customer, cyber security framework in banks, financial services provided by banks, basic savings bank deposit accounts, and frauds classification and reporting. The penalty was levied under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, after supervisory inspections, scrutiny of incident-related materials, show-cause notices, and consideration of the bank's replies and submissions.