RBI slaps fines on Axis Bank, Manappuram Finance

The Reserve Financial institution imposed a financial penalty of Rs 90.92 lakh on Axis Financial institution and Rs 42.78 lakh on gold mortgage agency Manappuram Finance for violation of sure instructions of the banking sector regulator. The fantastic has been imposed for non-compliance with sure instructions issued by the RBI on ‘Reserve Financial institution of India (KYC) Instructions, 2016’, ‘Loans and Advances – Statutory and Different Restrictions’, ‘Pointers on Managing Dangers and Code of Conduct in Outsourcing of Monetary Providers by banks’, and ‘Code of Conduct for Opening and Working Present Accounts’, the central financial institution mentioned in a press release.

The Reserve Financial institution of India (RBI) by an order dated November 02, 2023, imposed a financial penalty of Rs 90.92 lakh on Axis Financial institution Ltd for non-compliance with sure instructions.

“This motion relies on the deficiencies in regulatory compliance and isn’t meant to pronounce upon the validity of any transaction or settlement entered into by the financial institution with its clients,” it mentioned.

In a separate assertion, the RBI mentioned it has imposed a financial penalty of Rs 42.78 lakh on Thrissur-based Manappuram Finance for non-compliance with sure provisions of the “Non-Banking Monetary Firm – Systemically Essential Non-Deposit taking Firm and Deposit taking Firm (Reserve Financial institution) Instructions, 2016”.

A discover was issued to the corporate advising it to point out trigger as to why a penalty shouldn’t be imposed on it for failure to adjust to the RBI instructions, it mentioned.

After contemplating the corporate’s reply to the discover, further submissions made by it and oral submissions made in the course of the private listening to, the RBI got here to the conclusion that the cost of non-compliance with RBI instructions was substantiated and warranted imposition of financial penalty, it mentioned.

The apex financial institution additionally has imposed a Rs 20 lakh financial penalty on Anand Rathi International Finance Ltd for non-compliance with sure provisions of the RBI (Know Your Buyer (KYC) Instructions, 2016.

After contemplating the Mumbai-based NBFC agency’s reply to the discover and oral submission made in the course of the private listening to, the RBI concluded that the cost of non-compliance was substantiated and warranted the imposition of a financial penalty.