The Reserve Bank of India (RBI) has fined the largest private sector bank, HDFC Bank, and the third largest private bank, Axis Bank, for non-compliance with the RBI's regulatory norms. The RBI announced the monetary penalties on these two banks on 10 September 2024.

The Banking Regulation Act of 1949 makes the RBI the regulator of the banks in India and gives it the power to punish banks that fail to follow its rules and regulations.

Rs 1.91 crore fine on Axis Bank

The RBI fined Axis Bank Rs 1.91 crore for violating the provisions of the Banking Regulation Act 1949 regarding the opening of savings accounts for ineligible persons, failing to issue unique customer identification codes (UCIC), and improperly managing collateral for agricultural loans up to Rs 1.60 lakh.RBI also fined the bank for its subsidiary's conduct in violating RBI’s norms.

Rs 1 crore fine on HDFC Bank

The RBI fined HDFC Bank Rs 1 crore for failing to follow RBI’s instructions regarding deposit interest rates, recovery agents, and customer service practices. The bank was found guilty of paying first-year premiums for the life insurance policies of some of its customers, opening accounts for ineligible entities, and failing to follow customer contact guidelines.

Axis Bank

The Axis Bank started its banking operation as UTI Bank in 1994 and changed its name to Axis Bank in 2007.

It is India's third largest private bank by assets after HDFC Bank and ICICI Bank.

The Bank has over 5,100 domestic branches (including extension counters) and over 15,000 ATMs in India.

Its overseas branches are in Dubai, Singapore, and Gift City-IBU (Gujarat).

Tag Line: Badhti Ka Naam Zindagi

MD and CEO: Amitabh Chaudhary

Headquarters: Mumbai, Maharashtra

HDFC BANK

HDFC Bank started its banking operation in 1995. It was sponsored by the Housing Development Finance Corporation Limited or HDFC Ltd..

Later, in July 2023, the HDFC merged with the HDFC Bank, creating India’s largest private-sector bank.

After SBI, HDFC Bank is the second largest commercial bank in India.

MD & CEO of the Bank : Sashidhar Jagdishan

Headquarters: Mumbai

Tagline of the Bank: We Understand Your World