Reserve Bank of India imposes monetary penalty on Axis Bank Limited

Case Brief

RBI imposed a monetary penalty of Rs 25 lakh on Axis Bank Limited by order dated September 1, 2021 for contravention of RBI's Know Your Customer (KYC) Direction, 2016. During a scrutiny of a customer account in February and March 2020, RBI found that the bank had failed to monitor and carry out ongoing due diligence so that transactions were consistent with its knowledge of the customer, the customer's business, and risk profile. RBI issued a show-cause notice, considered the bank's reply and oral submissions, and concluded that the contravention was substantiated, warranting the penalty under the Banking Regulation Act, 1949.