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."