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RBI imposes Rs 1 cr fine on Fino Payments Bank for opening new a/c despite directions

Press Trust of India  |  Mumbai 

imposed a fine of Rs 1 crore on Fino for opening new accounts despite directions not to do so until further order.

The RBI, on October 31, 2018, imposed a penalty of Rs 10 million on FINO Limited, the said in a release.

The fine has been imposed for contravention of the direction to stop opening of new accounts until further instructions on account of violation of certain licensing conditions and operating guidelines for payments bank, RBI said.

This penalty has been imposed in exercise of powers vested in RBI under the provisions of the Banking Regulation Act, 1949, it said further.

Earlier in May, the RBI had directed the Mumbai-based to halt account opening functions till it modifies its processes to adhere to the regulator's rules on deposit limit, which mandates to restrict deposits to Rs 1 lakh.

Fino Payments Bank kicked off its operations in June last year.

In November 2014, the RBI had granted in-principle approval to 11 applicants, including Fino Payments Bank to set up

Earlier last month, commenced operations as a payments bank.

Among others, Airtel Payments Bank, India Post Payments Bank, Paytm Payments Bank, and Jio Payments Bank are already in operation.

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

First Published: Mon, November 05 2018. 21:25 IST