Penalties imposed on Axis Bank, Syndicate Bank and UCO Bank by RBI

The RBI has imposed a total penalty of Rs 2.2 crore on the private sector lender Axis Bank in two separate cases, Rs 2 crore on UCO Bank and Rs 1 crore on Syndicate Banks for violation of norms. The RBI imposed the penalty of Rs 2 crore on Axis Bank and UCO Bank for the non-compliance of rules related to payment through cheques.
In the second case, a penalty of Rs 20 lakh has been imposed on Axis Bank for the contravention of directions related to detection and impounding of counterfeit notes.
The penalty of Rs 1 crore has been imposed on Syndicate Bank for the violation of guidelines related to checking fraud and managing risk.
According to RBI, the action on banks is based on the deficiencies in regulatory compliance and is not pronounce upon the validity of any transaction entered into by the banks with its customers.