Mumbai (Maharashtra) [India], Mar. 5 (ANI): The Reserve Bank of India (RBI) imposed a monetary penalty worth Rs. 30 million on Axis Bank Limited (the bank) for non-compliance with the directions issued on Income Recognition and Asset Classification (IRAC) norms.
The penalty, which was imposed on February 27, was done in cognisance of the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, taking into account the failure of the bank in complying with the aforesaid directions/guidelines issued by the RBI.
The central bank in its official release clarified that the action was taken on the account of deficiencies in regulatory compliance, and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
The statutory inspection of the bank with reference to its financial position as on March 31, 2016, revealed, inter alia, violations of various regulations issued by the RBI in the assessment of Non-Performing Assets (NPAs). Based on the inspection report and other relevant documents, a notice dated November 16, 2017, was issued to the bank advising it to justify why no penalty should be imposed on it for non-compliance.
Taking cognisance of the bank's reply and oral submissions made in the personal hearing, the RBI came to the conclusion that the aforesaid charges of non-compliance with the central bank's directions/ guidelines were substantiated and warranted imposition of monetary penalty. (ANI)