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RBI imposes Rs 10 lakh penalty on Equitas Small Finance Bank

IANS  |  Mumbai 

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

The licensing conditions are stipulated by the Reserve 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 and 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.

--IANS

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, March 08 2018. 20:44 IST
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