Axis Bank fined by RBI for foreign exchange violations

Published 13/02/2025, 13:52
Axis Bank fined by RBI for foreign exchange violations

MUMBAI - Axis Bank (NSE:AXBK) Limited has been penalized by the Reserve Bank of India (NSE:BOI) (RBI) for non-compliance with specific foreign exchange management regulations. The RBI’s Foreign Exchange Department issued an order on Wednesday, February 12, 2025, imposing a compounding penalty of Rs. 37,32,505 on the bank.

The penalty is for contraventions of multiple regulations, including Regulation 14(6)(ii)(a) of the 2000 Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, Regulation 13.1(11) of the 2017 version of the same regulations, and Rule 23 (1) of the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019.

Specifically, the bank was cited for a delay in reporting downstream investment and for non-compliance with applicable pricing guidelines during the acquisition of an equity stake in another Indian company.

Despite the penalty, Axis Bank has stated that it does not foresee any material impact on its financial, operational, or other activities as a result of the RBI’s order.

The information regarding the penalty was disclosed in compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and has been communicated to the London Stock Exchange (LON:LSEG) and Singapore Stock Exchange for the information of investors and stakeholders.

This news is based on a press release statement from Axis Bank Limited and reflects the bank’s regulatory compliance challenges with respect to foreign exchange management.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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