The Reserve Bank on Monday said it has imposed a fine of Rs 3 crore on Axis Bank for contravention of NPA classification rules, and Rs 2 crore on Indian Overseas Bank for violation of KYC rules.
RBI said it had conducted a statutory scrutiny of private sector financial institution Axis Bank with reference to its financial position as on March 31, 2016.
The probe disclosed “violation of various regulations issued by RBI in the assessment of non-performing assets (NPA)”, the RBI said in a statement.
The RBI has imposed a fine of Rs 30 million on Axis Bank Limited for not following the orders issued by the central bank on Income Recognition and Asset Classification (IRAC) rules and regulations, it added.
Relating to the state-owned Indian Overseas Bank, the regulator said in another statement that a “fraud was detected” in one of the branches of the bank.
The verification of the documents, including the bank’s internal inspection report, among other things, disclosed violation of orders issued by RBI on Know Your Customer (KYC) norms, the central bank said, while imposing the Rs 2 crore fine on Indian Overseas Bank.