Current Affairs - Banking - Discussion

Reserve Bank of India imposed a penalty of Rs. 3 crore on Axis Bank for non-compliance of Income Recognition and Asset Classification (IRAC) norms and a penalty of Rs. 2 crore on Indian Overseas Bank for non-compliance with Know Your Customer (KYC) norms. In the case of IOB, RBI detected a fraud in one of IOB's branches, which was traced to non-compliance with KYC norms. The penalty was imposed after evaluating banks' reply and oral submissions in context of above matters.