RBI has taken action against a commercial bank. A huge monetary penalty has been imposed. The reason has also been given. Let us know why the central bank took this step and what impact will it have on the customers?
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RBI Action: The Reserve Bank of India has shown strictness against Fino Payments Bank Limited. A monetary penalty of Rs 29.60 lakh has been imposed for violating the guidelines related to “Licensing of Payments Bank”. The order was issued to the bank on 6 June 2025, taking the order of action. With this, till now in June, RBI has imposed monetary penalty on a total of 7 banks. The reason for which is violation of rules.
Let us tell you that Fino Payments Bank Limited operates as a commercial bank in India. It is also a public limited company, which offers various types of financial services to its customers. RBI is responsible for regulating it. Before taking the decision to impose the fine, the central bank had also issued a show cause notice to it and asked “Why should they not be fined for not following the last instructions?”
The decision to impose penalty has been taken on the basis of response received on the notice, submissions and documents submitted. This action has been taken under the powers conferred under section 47A (1) (c) and 46 (4) (i) of the Banking Regulation Act 1949.
Accused of breaking these rules
RBI conducted an inspection in March 2024 regarding the financial position of the bank. During this, violation of rules was detected. It was violating the regulatory maximum limit of end-of-day balance applicable for payments bank in some accounts on several occasions.
Customers will not be affected
RBI has made it clear that this action will not affect the transactions or any agreement between the bank and the customers. The account holders associated with this bank need not worry. Apart from this, if the Reserve Bank of India takes any action in future, then this action will not have any effect on it.
