New Delhi, Sept 9 (KNN) Federation of Indian Micro and Small & Medium Enterprises (FISME) has released an advisory asking its MSME members to be cautious about the unethical and wrong practices at Axis Bank.

The MSME body has asked its members who are existing customers of Axis Bank Ltd or are considering to switch to Axis to beware of the private lender’s unethical practices. 

It has received complaints from large number of MSME customers of Axis that are being harassed who intend to switch to other banks.

The MSME customers at Axis Bank have also complained about raising exorbitant demands for foreclosure charges ranging from 2 to 4 per cent of the sanctioned limits from them who wish to exit Axis.

Earlier in July, FISME had brought private lender Axis Bank under its advocacy radar for the exploitative foreclosure issue faced by the bank’s MSME customers.

It had sent a letter to Amitabh Chaudhry, MD and CEO of Axis Bank raising the issue.

FISME called out the Bank for employing practices which are against the Indian Banking norms and are in complete defiance of 'Code of Bank's Commitment to Micro and Small Enterprises' (CBCMSE) of which Axis is a signatory.  (KNN Bureau)