Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty on Jio Payments Bank Limited by order dated October 28, 2020. The penalty was for non-compliance with RBI directions requiring timely submission of the application for reappointment of the bank’s Managing Director and Chief Executive Officer under Section 35B of the Banking Regulation Act, 1949. RBI noted that the application was filed less than a month before the expiry of the incumbent’s term, although it was required to be filed four months in advance. Following a show-cause notice, the bank’s reply, oral submissions, and additional submissions, RBI concluded that the violation was established and warranted penalty under section 47A(1)(c) read with section 46(4)(i) of the Act.