Penalty Imposed for non-compliance with certain directions issued by RBI on ‘Licensing of Payments Banks’. T
FinTech BizNews Service
Mumbai, June 20, 2025: The Reserve Bank of India (RBI) has, by an order dated June 06, 2025, imposed a monetary penalty of Rs29.60 lakh (Rupees Twenty Nine Lakh Sixty Thousand only) on Fino Payments Bank Limited (the bank) for non-compliance with certain directions issued by RBI on ‘Licensing of Payments Banks’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.
The Statutory Inspection for Supervisory Evaluation (ISE 2024) of the bank was conducted by RBI with reference to its financial position as on March 31, 2024. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions.
After considering the bank’s reply to the notice and oral submissions made during the personal hearing, RBI found that the following charge against the bank was sustained, warranting imposition of monetary penalty:
The bank breached the regulatory ceiling of end of the day balance, as applicable for a payments bank, in certain accounts on several occasions.
The action is based on the deficiencies in the regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
