RBI issues letter of caution to Axis Bank over KYC compliance

Axis Bank on Wednesday said it has received a “Letter of Caution” from the Reserve Bank of India (RBI) advising it to exercise extreme caution and diligence to ensure strict compliance with KYC norms.

In a stock exchange filing, the lender clarified that the RBI’s communication was in connection with a matter arising from a Calcutta High Court judgment dated September 11, 2025.

The case pertained to the opening of an account in the name of a society back in 2009, during which certain documents, as outlined in the court order, had not been obtained

— a deviation from the KYC instructions applicable at that time.

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“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.

The central bank’s letter serves as an advisory, urging Axis Bank to ensure greater vigilance and adherence to regulatory directions on customer due diligence going forward. Shares of Axis Bank Ltd closed 1.29% higher at ₹1,182.50 on the NSE on Wednesday, ahead of the disclosure.

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