RBI Issues Letter of Caution to Axis Bank Over KYC Lapse; Bank Says Corrective Steps Taken

RBI Issues Letter of Caution to Axis Bank Over KYC Lapse; Bank Says Corrective Steps Taken

New Delhi: Reserve Bank of India (RBI) has issued a letter of caution to Axis Bank, advising the lender to maintain strict compliance with Know Your Customer (KYC) norms after finding a past lapse.

As reported by CNBC, Axis Bank has confirmed receipt of the communication and stated that it has already implemented the necessary corrective measures.

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Axis Bank has clarified that the RBI’s advisory was linked to a matter arising from a Calcutta High Court judgment dated September 11, 2025.

The issue related to the opening of a society’s account in 2009, during which some documents required under KYC guidelines at the time were not obtained.

“The bank has already initiated and taken corrective measures, as necessary, to align its operations and procedures with the stipulations of the same,” Axis Bank said in its statement.

RBI’s letter in this case does not impose any penalties. It serves as a reminder for the bank to exercise enhanced caution and due diligence in future customer onboarding and verification processes.