Axis Bank Safe Despite I-T Raids, RBI Says Won’t Cancel Licence

The clarification comes amid rumours that the bank was likely to lose its banking licence.

An employee walks in front of an Axis Bank sign. (Photo: Reuters)

The Reserve Bank of India (RBI) on Monday said it has "not initiated any action" to cancel Axis Bank's licence following allegations of irregularities at some of its branches after the demonetisation of high value notes last month.

Also Read: 44 Fake Accounts With 100 Cr Found in Delhi Axis Bank Raid

The Reserve Bank clarifies that it has not initiated any action to cancel the banking licence of Axis Bank in the wake of certain allegations about some serious irregularities in transactions relating to deposit/exchange of Specified Bank Notes in a few branches of the bank.

The clarification comes amid rumours in a segment of the media that the bank was likely to lose its banking licence, RBI stated further.

Refuting the reports in a clarification to BSE, Axis Bank said:

We strongly deny the contents of the said article and we reiterate that the Bank has strong systems and controls as per the norms prescribed by RBI.

It added:

We take this opportunity to assure customers/investors/members of the public that the bank has a strong code of conduct with zero tolerance to any deviations from prescribed processes. We are committed to adhering to the highest standards of governance in all aspects of our business and to provide the best services to our valued customers.

Also Read: IT Department Raids Kashmere Gate Axis Bank Branch in Delhi

(With inputs from PTI)