RBI imposes monetary penalty on Axis Bank Ltd.

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹30.00 lakh on Axis Bank Ltd. by order dated June 22, 2023. The action followed the ISE 2021 inspection, which found that the bank had levied penal charges in certain credit card accounts even where customers had paid dues by the due date via third-party platforms. After a show-cause process and review of the bank's submissions, RBI concluded that the non-compliance with its directions on prudential norms for income recognition, asset classification and provisioning pertaining to advances credit card accounts was established. The penalty was imposed under section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949.