The Reserve Bank of India (RBI) issued a ‘letter of caution’ to Axis Bank for non-compliance with Know-Your Customer norms, the bank informed the exchanges on Friday.
“Taking into account the remediation action and system improvements undertaken by the bank over the years the Committee considers it appropriate and sufficient that a ‘Letter of Caution’ is issued by Reserve Bank to the bank advising it to exercise extreme caution and diligence to avoid such instances and to ensure strict compliance of RBI instructions on KYC norms,” the filing said.
The bank said that they have already initiated corrective measures, as necessary, to align the operations and procedures. Axis Bank does not expect any material impact on financial, operation or other activities of the bank due to the said order.