The Reserve Bank of India (RBI) has slapped a fine of Rs 1 crore on Mumbai based Fino Payments Bank.
“The Reserve Bank of India (RBI) has, on October 31, 2018, imposed a monetary penalty of Rs 1 crore on Fino Payments Bank Limited (the bank) for contravention of the direction to stop the opening of new accounts until further instructions…,” said Central bank in its release.
The bank was earlier asked by the regulator to stop all new account opening activities as the RBI found that the payments bank is not adhering to its guidelines and some of the deposits in few accounts had exceeded Rs 1 Lakh mandate. This goes against the licensing criteria of a payments bank.
“RBI directed Fino Payments Bank to put in place appropriate process to address the operating guidelines on deposit limits in customer accounts. In view of this development, RBI advised us not to open new accounts until the upgraded processes are in place,” said a Fino Payments Bank.
The bank had announced in its official communiqué that RBI has lifted its ban from the bank.
Fino is one amongst the multiple payments bank penalised by the regulator for some reason or the other. Both Paytm Payments Bank and Airtel Payments Bank had to face the ire of regulatory norms.