New Delhi: The Reserve Bank of India (RBI) has taken big action on the private sector Axis Bank regarding the laxity in following KYC rules. RBI has imposed a penalty of Rs 25 lakh on Axis Bank for this. RBI said on Wednesday that they have decided to impose a fine of Rs 25 lakh on Axis Bank Ltd. This penalty has been imposed after violating certain provisions of Know Your Customer (KYC).

According to media reports, RBI said that during February and March 2020, the accounts of a customer of Axis Bank were scrutinized. During the investigation, it was found that the bank failed to comply with the provisions contained in the RBI's KYC Directions, 2016. According to the statement, the bank failed to conduct due diligence regarding the account. Due to this, the bank could not ensure that the transactions in the customer's account are commensurate with his business and risk profile. RBI has given notice to the bank in this regard. The decision to impose the fine was taken after considering the reply to the notice and the oral explanation. 

Let us know that the full form of KYC is Know Your Customer. This means details or forms to know about your customers. KYC is a form giving information regarding a customer. In this form, the customer fills all the necessary information about himself. In this KYC form, the customer has to fill his name, bank account number, PAN card number, Aadhar card number, mobile number, and complete address. 

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