RBI imposes Rs 10 lakh penalty on Equitas Small Finance Bank

Mar 08, 2018, 21:47 IST | IANS

The licensing conditions are stipulated by the Reserve Bank of India (RBI) at the time of issuing the banking licence

Reserve Bank of IndiaReserve Bank of India

The RBI on Thursday said it had imposed a penalty of Rs 10 lakh on Equitas Small Finance Bank for failing to comply with a licensing condition of obtaining prior approval from the central bank for certain actions.

The licensing conditions are stipulated by the Reserve Bank of India (RBI) at the time of issuing the banking licence. "The bank reported having undertaken the activity of rolling out mutual fund units, pension and insurance products and portfolio management services without obtaining the prior approval of RBI," the central bank said in a statement.

On January 18, 2018, the RBI had issued a notice to the bank and "after considering the bank's reply and oral submissions, RBI came to the conclusion that the aforesaid charge warranted imposition of monetary penalty," it said.

"This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers," the RBI added.

Catch up on all the latest Crime, National, International and Hatke news here. Also download the new mid-day Android and iOS apps to get latest updates

This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever

Trending Video

DISCLAIMER: mid-day and its affiliates shall have no liability for any views, thoughts and comments expressed on this article.

OBC Bank cash van robbed of Rs. 60 lakh

This website uses cookie or similar technologies, to enhance your browsing experience and provide personalised recommendations. By continuing to use our website, you agree to our Privacy Policy and Cookie Policy. OK