No step to cancel Axis Bank licence: RBI

Mumbai: The Reserve Bank today 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.

"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," said the notification.

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 firmly believe that said news is intended to spread panic amongst the general public, demoralise the staff and damage the reputation of the Bank. "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 our business and to provide the best services to our valued customers."

Axis Bank said that this is "without prejudice to our rights and contentions in the matter and to take appropriate measures to counter the irresponsible and mala fide report published by the said newspaper, as advised." Stock of Axis Bank closed 2.56 per cent down at Rs 444.60 on BSE.