RBI imposes monetary penalty on Axis Bank Limited

Case Brief

By an order dated April 29, 2025, RBI imposed a monetary penalty on Axis Bank Limited after supervisory inspection findings showed non-compliance with RBI directions on 'Un-authorized Operation of Internal / Office Accounts'. RBI said the sustained charge was that the bank routed unauthorised or unrelated entries through certain internal / office accounts. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, following show-cause proceedings, the bank's reply, additional submissions, and oral hearing.