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RBI imposes Rs 2.5 crore penalty on Axis Bank for non-compliance.

Banking & Economy | Dated: 27 Nov 2025

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2.5 crore on Axis Bank for non-compliance with certain directions issued by the central bank. The penalty pertains to violations related to Know Your Customer (KYC) norms and the code of conduct for outsourcing of financial services.

🎯 Key Highlights:

  • The penalty was imposed under the provisions of the Banking Regulation Act, 1949, following a statutory inspection of the bank's financial position.
  • The RBI clarified that the action is based on regulatory compliance deficiencies and is not intended to pronounce upon the validity of any transaction entered into by the bank with its customers.
  • This serves as a warning to other financial institutions to strictly adhere to RBI guidelines regarding customer due diligence.

💡 Other Important Facts:

  • Penalty Amount: Rs 2.5 Crore.
  • Reason: Non-compliance with KYC norms.
  • Authority: RBI.

📚 Test Your Knowledge:

On which bank did RBI recently impose a penalty of Rs 2.5 crore for KYC violations?

Correct Answer: Axis Bank

🚀 Quick Recap:

About Axis Bank

  • MD & CEO – Amitabh Chaudhry
  • HQ – Mumbai