The Reserve Bank of India said it is not planning to cancel the banking license of Axis Bank Ltd., following media reports of regulatory action being considered against the lender due to alleged violation of banking rules.

Axis Bank also denied the reports and said it adheres to the "highest standards of governance" in its operations, according to a Dec. 12 bourse filing. It said the publication of the "false and malafide" report in a regional newspaper was intended to damage the lender's image and create panic among stakeholders.