RBI Penalty: Crores of rupees fine imposed on two big banks of the country… Will RBI’s action affect the customers?

The Reserve Bank of India (RBI) has imposed a huge fine on two big banks. The first of these is the country’s largest private sector bank HDFC Bank and the second is Axis Bank. This action has been taken by the Reserve Bank on both the banks for negligence in complying with the rules set by the central bank. In such a situation, if you also have an account in these banks, then this news is very important for you. RBI has shared information in this regard by issuing a press release.

2.91 crore fine imposed on both banks
The Reserve Bank continues to be strict on all such small and big banks, which are negligent in complying with the guidelines. Talking about the latest case, the central bank has imposed a total fine of Rs 2.91 crore on HDFC Bank and Axis Bank. RBI has said that this action of fine has been taken after cases of negligence in the services provided to the customers by the banks came to light. This includes other matters including KYC, interest rates on deposits.

Why was Axis Bank fined?
If we look at the press release issued by RBI, the Reserve Bank has imposed the highest penalty on private sector Axis Bank, which is Rs 1.91 crore. It has been said that this penalty has been imposed for violating the rules of Section 19 (1) (A) of the Banking Regulation Act, 1949 (BR Act). Apart from this, a heavy fine has been imposed on Axis Bank for not following some instructions related to interest rate on deposits, KYC and agricultural loans.

Where did HDFC Bank go wrong?
Now let’s talk about the RBI’s action on the country’s largest private sector bank HDFC Bank, so let us tell you that the central bank has imposed a fine of Rs 1 crore on HDFC Bank. It was told in the press release that here too, action has been taken to impose a fine on HDFC Bank for not following the guidelines set for interest rates on deposits, recovery agents associated with the bank and bank customer service.

No impact on bank customers
Along with the information about the action of fine imposed on HDFC Bank and Axis Bank, RBI has also clarified the picture about the impact it will have on the customers of the banks. RBI has said that this action has been taken due to deficiencies in statutory and regulatory compliance. This will not affect the validity of any transaction or agreement made by the banks with their customers.