The directions include 'Strengthening the Controls of Payment Ecosystem between Sponsor Banks and SCBs/UCBs as a Corporate Customer', 'Cyber Security Framework in Banks', 'RBI (Financial Services provided by Banks) Directions, 2016', 'Financial Inclusion- Access to Banking Services - Basic Savings Bank Deposit Account' and 'Frauds - Classification and Reporting'. This action is based on the 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 Central Bank said in a statement. The RBI had conducted statutory inspections for supervisory evaluation (ISE) of the bank with reference to its financial position as on 31 March 2017 (ISE 2017), 31 March 2018 (ISE 2018) and 31 March 2019 (ISE 2019). The examination of the risk assessment reports pertaining to ISE 2017, ISE 2018 and ISE 2019, the report of scrutiny carried out by RBI in the backdrop of the incident relating to a fraud and related correspondence thereto, and the incident report submitted by the bank in June 2020 relating to a few suspected transactions and related correspondence, revealed, inter-alia, contravention of / non-compliance with the directions issued by RBI. In furtherance to the same, notices were issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions, as stated therein. After considering the bank's replies to the notices, oral submissions made during the personal hearing and examination of additional submissions made by the bank, RBI came to the conclusion that the charges of non-compliance with/contravention of the RBI directions were substantiated and warranted imposition of monetary penalty on the bank, to the extent of contravention of / non-compliance with the directions. Axis Bank offers the entire spectrum of financial services to customer segments covering large and mid-corporates, MSME, agriculture and retail businesses. As on 30 June 2021, the bank had a network of 4,528 domestic branches and extension counters situated in 2,559 centres. The private sector bank reported a 94.2% jump in standalone net profit to Rs 2,160 crore on a 2.4% rise in total income to Rs 19,591 crore in Q1 FY22 over Q1 FY21. The scrip rose 0.59% to currently trade at Rs 726.95 on the BSE. On a year-to-date (YTD) basis, the stock has gained 16.81% while the benchmark Sensex has added 10.22% during the same period. Powered by Capital Market - Live News |