Two of India's largest private sector banks — Axis Bank and HDFC Bank, were hit with penalties amounting to Rs 2.91 crore by the Reserve Bank of India (RBI) for deficiencies in statutory and regulatory compliance.
Axis Bank has been fined Rs 1.91 crore for violating provisions of the Banking Regulation Act, RBI said in a statement. These include non-compliance with 'Interest Rate on Deposits' 'Know Your Customer (KYC)' and 'Collateral-Free Agricultural Loans'.
RBI's statement further mentioned that HDFC Bank was fined Rs 1 crore for failing to stick to regulations regarding 'Interest Rates on Deposits', 'Recovery Agents of Banks', and 'Customer Service in Banks'.
The fines will not impact the validity of any transactions or agreements between banks and their customers, the RBI statement said, clarifying that these fines are related to regulatory and compliance issues.