Reserve Bank of India imposes monetary penalty on FINO Payments Bank Limited
Case Brief
On October 31, 2018, RBI imposed a monetary penalty of ₹10 million on FINO Payments Bank Limited under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949. The penalty was imposed because the bank contravened RBI’s direction to stop opening new accounts until further instructions, which had been issued due to violations of certain licensing conditions and operating guidelines for payments banks.
RBI imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949 because FINO Payments Bank Limited contravened a direction to stop opening new accounts until further instructions. The direction had been issued in view of violations of certain licensing conditions and operating guidelines applicable to payments banks.
Severity Assessment
A ₹10 million penalty falls in monetary severity band 3, and the underlying restriction concerns a targeted operational compliance breach rather than a broader business ban.
FINO Payments Bank Limited must absorb the monetary penalty and remain compliant with RBI’s direction and applicable licensing/operating requirements. The release does not state any new restriction beyond the penalty itself, but it underscores that the bank was not permitted to open new accounts until further instructions at the time of the violation.
Published as FINO Payments Bank Limited
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