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Jio Payments Bank fined Rs 1 cr for delay in submitting MD's reappointment application

Jio Payments Bank was required to submit an application on reappointment of MD & CEO four months prior to the date on which the term was to expire. The bank, however, sent the application less than a month prior to that date

twitter-logoBusinessToday.In | October 29, 2020 | Updated 15:25 IST
Jio Payments Bank fined Rs 1 cr for delay in submitting MD's reappointment application

The Reserve Bank of India (RBI) has imposed penalty worth Rs 1 crore on Jio Payments Bank Ltd for not submitting application regarding the reappointment of MD and CEO in time.

The RBI action has been taken under Section 35B of the Banking Regulation Act, 1949 (the Act). "This penalty has been imposed in exercise of powers vested in RBI under the provisions of section 47A (1)(c) read with section 46(4)(i) of the Act. This action is based on the 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," the RBI said in a statement.

Also read: 'Not only a textile company': Dhirubhai's words which later inspired Mukesh Ambani to start Jio

Jio Payments Bank was required to submit an application in the case of reappointment of its MD & CEO four months prior to the date on which the term was to expire. The bank, however, submitted the application less than a month prior to that date.

The RBI issued a notice to the bank, advising it to show cause as to why penalty should not be imposed for its failure to comply with the RBI directives.

After considering the bank's reply, oral submissions made during the personal hearing and examination of additional submissions, the RBI imposed a monetary penalty on the bank.

Also read: BT Buzz: How Reliance Jio is building its 5G story brick-by-brick

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