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MUMBAI: The RBI on Wednesday stated it has imposed a penalty of Rs 25 lakh on Axis Financial institution Restricted for contravention of sure provisions of Know Your Buyer (KYC) norms.
The RBI stated a scrutiny was carried out throughout February and March 2020 in a buyer account maintained with Axis Financial institution, and it was noticed that the financial institution had “did not comply” with instructions contained within the Reserve Financial institution of India – KYC Path, 2016.
“…the financial institution failed to watch/perform ongoing due diligence within the stated account to make sure that the transactions had been in keeping with its information in regards to the buyer, buyer’s enterprise and threat profile,” it stated in an announcement.
A discover was issued to the financial institution, advising it to point out trigger why the penalty shouldn’t be imposed on it for contravention of the instructions.
After contemplating the reply to the discover and oral submissions made in the course of the private listening to, the RBI stated it “got here to the conclusion that the cost of contravention of/non-compliance with the aforesaid RBI instructions was substantiated” and warranted imposition of financial penalty.
The RBI, nonetheless, added that the penalty is predicated on deficiencies in regulatory compliance and isn’t supposed to pronounce upon the validity of any transaction or settlement entered into by the financial institution with its prospects.
The RBI stated a scrutiny was carried out throughout February and March 2020 in a buyer account maintained with Axis Financial institution, and it was noticed that the financial institution had “did not comply” with instructions contained within the Reserve Financial institution of India – KYC Path, 2016.
“…the financial institution failed to watch/perform ongoing due diligence within the stated account to make sure that the transactions had been in keeping with its information in regards to the buyer, buyer’s enterprise and threat profile,” it stated in an announcement.
A discover was issued to the financial institution, advising it to point out trigger why the penalty shouldn’t be imposed on it for contravention of the instructions.
After contemplating the reply to the discover and oral submissions made in the course of the private listening to, the RBI stated it “got here to the conclusion that the cost of contravention of/non-compliance with the aforesaid RBI instructions was substantiated” and warranted imposition of financial penalty.
The RBI, nonetheless, added that the penalty is predicated on deficiencies in regulatory compliance and isn’t supposed to pronounce upon the validity of any transaction or settlement entered into by the financial institution with its prospects.
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