RBI fines Jio Payments Rs 1 cr for failing on CEO reappointment rule

Action was based on the deficiencies in regulatory compliance, says central bank.

The Reserve Bank of India (RBI) said on Wednesday it has fined Jio Payments Bank Rs 1 crore for not complying with its directions on timely submission of application to reappoint the company's Managing Director and Chief Executive Officer.

This action was based on the deficiencies in regulatory compliance, and was not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, the central bank said in a statement. 

Jio Payments was required to submit an application under Section 35B of the RBI Act in the case of reappointment of MD & CEO of the bank four months prior to the date on which the executive’s term was to expire. The bank submitted the application less than a month prior to that date.