Reserve Bank of India imposes monetary penalty of INR10,00,000/- on Equitas Small Finance Bank Limited

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          Reserve Bank of India has informed to public at large that on March 01, 2018, it has imposed a monetary penalty of ₹ one million on Equitas Small Finance Bank Limited (the bank) for non-compliance with one of the licensing conditions stipulated by RBI.

Reserve Bank of India has also clarified that this  RBI 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.

Brief Background

Equitas Small Finance Bank reported having undertaken the activity of rolling out Mutual Fund units, Pension products, Insurance products and portfolio management services without obtaining prior approval of RBI.

Based on the information received and other relevant documents, a Notice, dated January 18, 2018, was issued to the Equitas Small Finance Bank advising it to show cause as to why penalty should not be imposed on it for non-compliance with the licensing conditions stipulated by the Reserve Bank of India at the time of issuing banking license to the bank.

After considering the Equitas Small Finance Bank’s reply and oral submissions during the personal hearing, RBI came to the conclusion that the aforesaid charge of non-compliance with one of the licensing conditions stipulated by RBI was substantiated and warranted imposition of monetary penalty.

Related Reading

01) Equitas Bank launches digital wealth management

02)         Equitas Life Insurance

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