RBI slaps penalty on Axis Bank, HDFC Bank

RBI has imposed penalties totalling Rs 2.91 crore on Axis Bank and HDFC Bank for certain deficiencies in statutory and regulatory compliance.

In a statement on Tuesday, Reserve Bank of India ( RBI ) said a penalty of Rs 1.91 crore has been imposed on Axis Bank for contravention of certain provisions of Banking Regulation Act, and n-compliance with certain directions on 'Interest Rate on Deposits', 'Kw Your Customer (KYC)' and 'Credit Flow to Agriculture-Collateral free agricultural loans'.

A penalty of Rs 1 crore has been imposed on HDFC Bank for n-compliance with certain directions on 'interest rate on deposits', 'recovery nts engd by banks' and 'customer service in banks', it said in ar release.

RBI also said penalties are based on deficiencies in statutory and regulatory compliance and is t intended to prounce upon validity of any transaction or agreement entered into by banks with ir customers.