RBI action on 5 banks including Axis, ICICI, now will have to pay fine of lakhs

Reserve Bank of India (RBI) on Friday fined several large banks. The list of five major banks features ICICI Bank, Bank of Baroda and Axis Bank. The charges against these banks are that they did not comply with the norms.

RBI imposed Rs 97.20 lakh fine on ICICI Bank. ICICI Bank did not comply with some of the instructions regarding the cybersecurity framework, KYC, credit cards, and debit cards, for which the bank is being fined by RBI.

The bank is accused of failing to comply with the guidelines issued regarding financial services and customer service counters available in the bank. Hence, Bank of Baroda is fined Rs 61.40 lakh by RBI.

IDBI Bank has not followed the instructions related to interest subsidy on short-term loans given for agriculture and allied activities through Kisan Credit Card. In such a situation, RBI has imposed a fine of Rs 31.8 lakh on IDBI.

Apart from this, Bank of Maharashtra has not followed the instructions related to KYC, due to which a fine of Rs 31.80 lakh has been imposed on it.

Axis Bank has also not followed RBI's instructions on unauthorized operation of internal/office accounts, due to which a fine of Rs 29.60 lakh has been imposed on Axis Bank.

RBI has clarified in its order that the purpose of this fine is not to question the validity or any transaction done by the banks with the customers. This action has been taken due to non-compliance of the rules properly.