Axis Bank, IDBI Bank fined for noncompliance with central bank directives

The Reserve Bank of India imposed penalties on Axis Bank Ltd. and IDBI Bank Ltd. for deficiencies in regulatory compliance.

The central bank said April 8 it fined Axis Bank 9.3 million rupees for noncompliance with the central bank's directions on loans and advances and know-your-customer rules as well as for non-maintenance of minimum balances in savings bank accounts.

Meanwhile, IDBI Bank was fined 9 million rupees for not complying with the directions on classification and reporting of fraud, the cybersecurity framework in banks and strengthening controls of the payment ecosystem.

The lender said in a same-day separate filing it put in place corrective actions to strengthen its internal control mechanisms to avoid a repeat of the incidents.

As of April 8, US$1 was equivalent to 75.95 Indian rupees.