India's central bank fined Axis Bank Ltd. and Indian Overseas Bank an aggregate of 50 billion rupees for violating regulatory rules.
The Reserve Bank of India said March 5 that it fined Axis Bank 30 million rupees for violating classification rules for nonperforming assets. The penalty follows a statutory inspection of the bank's financial position as of March 31, 2016.
The central bank fined Indian Overseas Bank 20 million rupees for breaching know-your-customer, or KYC, norms. A report on a suspected fraud case in one of the bank's branches revealed that the lender did not comply with the central bank's KYC rules.
The central bank imposed the fines Feb. 27.
As of March 5, US$1 was equivalent to 65.05 Indian rupees.
