REG - Axis Bank Ltd Axis Bank Ltd (144A) - Disclosure under Reg 30 SEBI LODR Regulations 2015

Axis BankAnnouncement

11/09/2024 07:00

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RNS Number : 7264D  Axis Bank Limited  11 September 2024

Dear Sir/Madam,

 

 SUB:  Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure
       Requirements) Regulations, 2015.

 

This is to inform you that the Reserve Bank of India ("RBI") vide its letter
dated September 10, 2024, has imposed a monetary penalty amounting to Rs. 1.91
crore (Rupees One crore Ninety-One Lakh only) on the Bank for the following
non-compliances:

 

1.   Opening savings deposit accounts in the name of ineligible entities;

2.   Allotting multiple Customer Identification Code to its individual
customers instead of a Unique Customer Identification Code for each customer;

3.   Obtaining collateral security for agricultural loans of value less than
Rs. 1.6 lakh;

4.   Undertaking of non-permissible business of 'providing technology
services' by one of the wholly owned subsidiaries of the Bank.

 

This penalty has been imposed in exercise of powers vested in RBI conferred
under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the
Banking Regulations Act, 1949 and emanates from statutory inspections for
supervisory evaluation for FY23.

 

The Bank has already initiated / taken corrective measures, as necessary, to
align the operations / procedures in line with the stipulations of the RBI.

 

The relevant information as per the format prescribed by SEBI vide its
circular no. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, is
attached as Annexure A.

 

This is for your information and records.

 

Thanking you.

 

Yours faithfully,

 

For Axis Bank Limited

 

 

 

Sandeep Poddar

Company Secretary

 

Encl.: As above.

 

CC: London Stock Exchange

        Singapore Stock Exchange

Annexure A

 

 Sr. No.  Particulars                                                                 Details
 1.       Name of the Authority                                                       Adjudication Committee of Executive Directors of the Reserve Bank of India
                                                                                      ("RBI").
 2.       Nature and details of the action(s) taken, initiated or order(s) passed     Imposition of monetary penalty of Rs. 1.91 Crore (Rupees One Crore Ninety-One
                                                                                      Lakh only), in exercise of powers vested in the RBI,

                                                                                      conferred under the provisions of Section 47A(1)(c) read with Sections 46
                                                                                      (4)(i) of the

                                                                                      Banking Regulation Act, 1949.
 3.       Date of receipt of direction or order, including any ad-interim or interim  September 10, 2024
          orders, or any other communication from the authority
 4.       Details of the violation(s) / contravention(s) committed or alleged to be   i.   Opening savings deposit accounts in the name of ineligible entities;
          committed

                                                                                      ii.  Allotting multiple Customer Identification Code to its individual
                                                                                      customers instead of a Unique Customer Identification Code for each customer;

                                                                                      iii.  Obtaining collateral security for agricultural loans of value less than
                                                                                      Rs. 1.6 lakh;

                                                                                      iv. Undertaking non-permissible business of 'providing technology services' by
                                                                                      one of the wholly owned subsidiaries of the Bank.
 5.       Impact on financial, operation or                                           Rs. 1.91 Crore (Rupees One Crore Ninety-One Lakh only)

          other activities of the listed entity,

          quantifiable in monetary terms to

          the extent possible

 

http://www.rns-pdf.londonstockexchange.com/rns/7264D_1-2024-9-11.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/7264D_1-2024-9-11.pdf)

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