Axis Bank share price falls after SEBI imposes Rs 25 lakh fine

Stocks

The share touched a 52-week high of Rs 819 and a 52-week low of Rs 400 on 01 September, 2021 and 24 September, 2020, respectively.

Axis Bank (Representative image)

Axis Bank (Representative image)

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Axis Bank share price down marginally in the early trade on September 2 after Central Bank imposed Rs 25 lakh fine on the bank for rule violations.

The Reserve Bank of India (RBI) on September 1 imposed a monetary penalty of rupees twenty five lakh on Axis Bank for violation of rules, the central bank said on Wednesday.

The regulator cited contravention of/non-compliance with certain provisions of directions issued by RBI contained in the Reserve Bank of India – (Know Your Customer (KYC)) Direction, 2016.

This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, the RBI said.

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The RBI carried out a scrutiny of Axis Bank during February 2020 and March 2020 in a customer account maintained with the bank and it was observed that the bank had failed to comply with the aforesaid directions issued by RBI, the regulator said.

Subsequently, a notice was issued to the bank. After considering the bank’s reply, the RBI came to the conclusion that the charge of contravention of/noncompliance with the aforesaid RBI directions were substantiated and warranted imposition of monetary penalty, to the extent of non-compliance with the aforesaid direction, the RBI said.

At 09:22 hrs Axis Bank was quoting at Rs 797.40, down Rs 1.10, or 0.14 percent on the BSE.

The share touched a 52-week high of Rs 819 and a 52-week low of Rs 400 on 01 September, 2021 and 24 September, 2020, respectively.

Currently, it is trading 2.64 percent below its 52-week high and 99.35 percent above its 52-week low.