RBI imposes monetary penalty on ‘HDFC Bank Limited’ and ‘Axis Bank Limited’ for non-compliance with RBI Directives
Editorial Note : RBI has imposed a monetary penalty of Rs 1 crore on ‘HDFC Bank Limited’ and Rs 1.91 crore on ‘Axis Bank Limited’ for non-compliance with certain directions issued by RBI on Interest Rate of Deposits. Both banks opened certain savings deposit accounts in the name of ineligible entities. Besides, a wholly-owned subsidiary of Axis Bank undertook business as a technology service provider, which is not a permissible business u/s 6 of the Banking Regulation Act.