Recorded RBI impact
Fine: Rs 29.6 L
Monetary penalty · Fresh imposition
Published by RBI
20 Jun 2025
Case Brief
By an order dated June 06, 2025, RBI imposed a monetary penalty of Rs 29.60 lakh on Fino Payments Bank Limited. The bank was found to have breached RBI’s regulatory ceiling for end-of-day balances, applicable to payments banks, in certain accounts on several occasions. The action followed the Statutory Inspection for Supervisory Evaluation (ISE 2024), a show-cause notice, and consideration of the bank’s reply and oral submissions. RBI stated that the penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, and that it was without prejudice to any other action that may be initiated against the bank.
Why RBI Acted
RBI imposed a monetary penalty after supervisory inspection (ISE 2024) found that Fino Payments Bank Limited had not complied with certain RBI directions issued on ‘Licensing of Payments Banks’. The sustained charge was that the bank breached the regulatory ceiling of end-of-day balance, applicable to a payments bank, in certain accounts on several occasions. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, following a show-cause notice, the bank’s reply, and oral submissions at personal hearing.
Operating Impact
Fino Payments Bank must absorb the financial penalty and continue complying with RBI’s directions on payments bank licensing, including the end-of-day balance ceiling. The order does not itself restrict current operations beyond the penalty, but RBI has reserved the right to initiate further action if warranted.
Regulatory Basis
- Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 29.6 L
- Order Date
- 6 Jun 2025
- Effective From
- 6 Jun 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Payment entity