The Reserve Bank of India (RBI) has slapped a fine of Rs 90.92 lakh on Axis Bank and Rs 42.78 lakh on gold loan firm Manappuram Finance for violation of certain regulatory norms. 

The monetary penalty has been imposed for non-compliance with certain directions issued by the RBI on 'Reserve Bank of India (KYC) Directions, 2016', 'Loans and Advances - Statutory and Other Restrictions', 'Guidelines on Managing Risks and Code of Conduct in Outsourcing of Financial Services by banks', and 'Code of Conduct for Opening and Operating Current Accounts', the central bank said in a statement.

The action on Axis Bank was based on the deficiencies in regulatory compliance. It is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, the RBI said.

In a separate statement, the RBI said it has imposed a monetary penalty on Thrissur-based Manappuram Finance for non-compliance with certain provisions of the "Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016".

A notice was issued to the company advising it to show cause as to why a penalty should not be imposed on it for failure to comply with the RBI directions, it said.

After considering the company's reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, the RBI came to the conclusion that the charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty, it said.

The apex bank has also imposed a Rs 20 lakh monetary penalty on Anand Rathi Global Finance for non-compliance with certain provisions of the RBI (Know Your Customer (KYC) Directions, 2016.

After considering the Mumbai-based NBFC firm's reply to the notice and oral submission made during the personal hearing, the RBI concluded that the charge of non-compliance was substantiated and warranted the imposition of a monetary penalty.