Recorded RBI impact
Fine: Rs 26.7 L
Monetary penalty · Fresh imposition
Published by RBI
31 Jan 2025
Case Brief
By an order dated January 15, 2025, RBI imposed a monetary penalty of ₹26.70 lakh on India Post Payments Bank Limited. The penalty was imposed after an inspection and supervisory process found that the bank had not complied with certain RBI directions on Customer Service in Banks. RBI sustained the charge that the bank upgraded certain Savings Bank accounts without obtaining customers’ consent, and also levied annual charges after those accounts were upgraded. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.
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, after supervisory inspection found non-compliance with RBI directions on Customer Service in Banks. The sustained charge was that India Post Payments Bank upgraded certain Savings Bank accounts without obtaining customers’ consent, and also levied annual charges after such upgradation.
Operating Impact
India Post Payments Bank Limited must absorb the monetary penalty and address the compliance lapse in its customer-service processes. The order does not itself cancel or restrict operations, but RBI has noted that further action may still be initiated separately.
Regulatory Basis
- Section 47 A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 26.7 L
- Order Date
- 15 Jan 2025
- Effective From
- 15 Jan 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Bank