The Axis Bank share price declines marginally on September 2 after RBI's imposed rupees 25 lakh fine on the bank for rule violations.
The Reserve Bank of India (RBI) has said on Wednesday that it had imposed a monetary penalty of rupees twenty five lakh on Axis Bank on September 1 for violation of rules.
The regulator had quoted contravention of/non-compliance with certain provisions of directions issued by RBI that contained in the Reserve Bank of India (Know Your Customer (KYC)) Direction, 2016.
The RBI has said that the action is based on the weaknesses in regulatory obedience and is not deliberated to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
The regulator said that RBI had bring off a study of Axis Bank during February & March 2020 through a customer account maintained with the bank and it was observed that the bank had failed to follow with the above mentioned directions issued by RBI.
Subsequently, a notice was given out to the bank. After taking the bank’s reply in consideration, the RBI came to the conclusion that the penalty of contravention of/noncompliance with the aforesaid RBI directions were substantiated and warranted imposition of monetary penalty.
Today, on September 2 Axis Bank was trading at rupees 802, up 0.39 per cent on the BSE.
The bank's share touched a 52-week high of rupees 819 on 01 September, 2021 and a 52-week low of rupees 400 on 24 September, 2020.