Reserve Bank of India (RBI) on July 28 imposed a monetary penalty of Rs 50 million on Axis Bank, private sector bank in India for non-compliance with certain provisions.

The penalty has been imposed for 'contravention of/non-compliance' with certain provisions of directions issued by the RBI. They include 'Strengthening the Controls of Payment Ecosystem between Sponsor Banks and SCBs/UCBs as a Corporate Customer'; 'Cyber Security Framework in Banks' and 'Reserve Bank of India (Financial Services provided by Banks) Directions, 2016'.

The statutory Inspections for Supervisory Evaluation (ISE) of the bank were conducted by RBI with reference to its financial position as on March 31, 2017, (ISE 2017), March 31, 2018, (ISE 2018), and March 31, 2019 (ISE 2019).

The examinations into a series of reports including the report submitted by the bank in June 2020 relating to a few suspected transactions and related correspondence revealed non-compliance with the above-mentioned directions issued by RBI, the central bank said. Later, notices were issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions, as stated therein.

After considering the bank's replies to the notices, oral submissions made during the personal hearing and examination of additional submissions made by the bank, RBI came to the conclusion that the charges of non-compliance warranted imposition of monetary penalty on the bank, to the extent of contravention of / non-compliance with the aforesaid directions, the RBI said.