The Reserve Bank of India (RBI) fined Axis Bank, Jammu & Kashmir Bank, and the Bank of Maharashtra for regulatory infractions.
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Introduction
The Reserve Bank of India (RBI) has levied a monetary penalty of Rs 2.5 crore on Jammu & Kashmir Bank for failing to comply with certain RBI directives. The penalty stems from the bank’s inability to follow the RBI’s instructions on the central repository of substantial common exposures across banks, loans, and advances, as well as statutory and other constraints. Furthermore, the bank failed to ensure the timely adoption and reinforcement of SWIFT-related operational controls.
Axis Bank Fined for Violating RBI Guidelines on Credit Card Accounts
The RBI fined Axis Bank Rs 30 lakh for failing to comply with various sections of the RBI’s Prudential Norms on Income Recognition, Asset Classification, and Provisioning applicable to Advances on Credit Card Accounts. The penalty derives from the bank imposing late payment penalties on select accounts for credit card dues that were paid on time through third-party platforms.
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Bank of Maharashtra Penalized for Breaching RBI’s Directives on Loans and ATMs
The RBI has fined the Bank of Maharashtra Rs 1.45 crore for failing to follow particular instructions issued by the RBI. The penalty is for the bank’s failure to follow the RBI’s Loans and Advances: Statutory and Other Restrictions rules, as well as the Advisory on Man in the Middle (MiTM) Attacks in ATMs. Furthermore, the bank failed to implement the necessary ATM control mechanisms, specifically end-to-end encryption of communication between the ATM terminal or PC and the ATM Switch, within the time frame prescribed.
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