RBI Fines Fino Payments Bank INR 29.6 Lakh For Flouting Licencing Rule

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 29.6 lakh on Fino Payments Bank for violating a licensing rule. The penalty was levied because the payments bank was found to have breached the regulatory limit on the end-of-day balance that can be held in a customer's account. RBI regulations for payments banks stipulate a maximum balance that a customer can maintain, and Fino Payments Bank had failed to adhere to this rule. The RBI's action is a result of its supervisory review and is intended to ensure that all regulated entities comply strictly with the terms and conditions of their licenses. This penalty serves as a reminder to payments banks and other financial institutions about the importance of regulatory compliance and the consequences of any breaches.