Recorded RBI impact
Fine: Rs 1.00 Cr
Monetary penalty · Fresh imposition
Published by RBI
5 Nov 2018
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.
Why RBI Acted
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.
Operating Impact
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.
Regulatory Basis
- Section 47A (1) (c) read with Section 46 (4) (i) of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.00 Cr
- Order Date
- 31 Oct 2018
- Effective From
- 31 Oct 2018
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Bank