RBI Fines Fino Payments Bank ₹3 Million for Breaching Balance Limits

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹3 million on Fino Payments Bank after the bank was found to have breached the regulatory ceiling for end-of-day balances in customer accounts. Payments banks in India are required to strictly adhere to a maximum deposit limit of ₹1 lakh per customer, a key condition of their operating license.

 

The penalty comes as part of the RBI’s ongoing crackdown on regulatory violations across the banking and payments sector. According to the RBI’s latest annual report, the central bank has ramped up enforcement actions, levying penalties on several banks and non-banking financial companies for non-compliance with statutory provisions, including deposit limits, cybersecurity, and KYC norms. Fino Payments Bank’s violation specifically involved allowing customer accounts to exceed the prescribed deposit cap, which is designed to limit risk and ensure the bank operates within its specialized mandate.

 

This isn’t the first time Fino Payments Bank has faced regulatory action. In previous years, the RBI has penalized the bank for similar breaches, including opening new accounts despite restrictions and failing to implement adequate processes for monitoring deposit limits. The RBI’s actions underline its commitment to maintaining strict oversight of payments banks, especially as digital banking and financial inclusion initiatives expand rapidly in India.

 

The penalty serves as a reminder to all regulated entities that compliance with RBI guidelines is non-negotiable, and any lapses—especially those that could affect customer safety or the integrity of the financial system—will attract swift punitive measures.

 

Sources: Financial Express, Economic Times, Inc42