Axis Bank shares trade lower in early trade as RBI issues 'Letter of Caution': All you need to know

This letter is in connection with the directions contained in the judgment dated September 11, 2025, of the Hon’ble High Court of Calcutta in MAT Nos. 781/2025 and MAT No. 894 of 2025, advising the Bank to exercise extreme caution and diligence to avoid instances and to ensure strict compliance with RBI instructions on KYC norms.

The bank has already initiated/taken corrective measures, as necessary, to align the operations/procedures in line with the stipulations of the same, the lender said.

Nature and details of the action(s) taken, initiated, or order(s) passed

Letter of Caution passed by the High-level Committee in connection with the directions contained in the judgement dated September 11, 2025, of the Hon’ble High Court of Calcutta in MAT Nos. 781/2025 and MAT No. 894 of 2025.

Details of the violation(s)/contravention(s) committed or alleged to be committed

The instructions regarding Customer Identification Requirements consolidated in Paras 2.4(d) and 2.5(i) read with Annex I of RBI Master Circular on "Know Your Customer (KYC) norms / Anti-Money Laundering (AML) standards / Combating of Financing of Terrorism (CFT) / Obligation of banks under PMLA, 2002" bearing No. DBOD. AML. BC. No. 12 /14. 01. 001/2008-09 dated July 01, 2008, are required to be complied with by the banks in letter and spirit.

In the present case, Axis Bank said, while opening the account in the name of the Society in 2009, the bank had not obtained certain documents as mentioned in the order, which was not in conformity with the applicable instructions in that regard.

However, taking into account the remediation action and system improvements undertaken by the bank over the years, the Committee considers it appropriate and sufficient that a 'Letter of Caution' is issued by the Reserve Bank to the bank advising it to exercise extreme caution and diligence to avoid such instances and to ensure strict compliance with RBI instructions on KYC norms.

Impact on financial, operational, or other activities of the listed entity

The bank does not expect any material impact on financial, operational, or other activities of the bank due to the said order.

Axis Bank Q2 FY26 Results schedule

On October 3, in its exchange filing, Axis Bank said a meeting of the Board of Directors of the private sector lender will be held on Wednesday, October 15, 2025, inter alia, to consider and approve the unaudited standalone and consolidated financial results of the Bank for the quarter and half year ended September 30, 2025, which shall be subjected to limited review by the joint statutory auditors.