(Pooja Dubey, Intern Journalist) The Reserve Bank of India (RBI) has imposed a penalty of Rs 1 crore on Jio Payments Bank. The penalty has been imposed by the central bank for delaying reporting of the re-appointment of the Managing Director (MD) and Chief Executive Officer (CEO).
The penalty imposed on not following the rules has been given by the RBI in a statement. The central bank statement said that the penalty has been imposed by Jio Payments Bank for not following the rules. According to RBI, Jio Payments Bank has violated Section 47 (1) (C). The bank said that Jio Payments Bank has violated the regulatory norms of the deadline to complete any transaction.
It was to be given four months before the end of tenure, it should be known that as per section 35B of the RBI Act, Jio Payments Bank had to give information about the re-appointment of MD and CEO four months before the end of tenure. However, the bank has given this information a month before the end of tenure. So one has to apply in a particular format.
Notice sent to the bank The RBI issued a notice to the bank asking Jio Payments Bank to explain the reasons why the penalty should not be imposed for failure to follow RBI instructions. After considering the bank’s reply, it was reviewed during the individual hearing and action and thereafter RBI imposed a monetary penalty on the bank.
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