On Tuesday, the Reserve Bank of India (RBI) said that private sector lender Axis Bank has been slapped with a penalty of Rs. 2.2 crore in two separate cases. Further for violation of norms, Rs. 2 crore penalty has been imposed on UCO Bank and Rs. 1 crore on Syndicate Bank.

Rs. 2 crore penalty each on Axis Bank and UCO Bank has been slapped in lieu of non-adherence to norms in relation to payment via cheques.

Further, another Rs. 20 lakh is being imposed as penalty on Axis Bank for contravention of the guidelines pertaining to impounding and detection of fake currency notes.

In the case of Syndicate Bank, penalty has been imposed for violation of directions related to managing risk and checking fraud.

However, the action taken on banks is due to deficiencies in regulatory compliance and is not intended at pronouncing upon the validity of any agreement or transaction which the banks enter into with its customers.

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