Reserve Bank of India( RBI) has imposed a penalty of Rs 1 crore on Reliance Jio Payments Bank Limited for non-compliance with RBI directions on timely submission of application in the case of re-appointment of Managing Director and Chief Executive Officer .
“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,” RBI said in the statement, adding that the action was 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.
Jio Payments Bank was required to submit an application under Section 35B of the Act in the case of reappointment of MD & CEO of the bank four months prior to the date on which the term of the current position holders was to expire as per RBI guidelines.
However, the bank submitted the said application less than a month prior to that date. The central bank concluded that the aforesaid charge of non-compliance with RBI directions was established and warranted imposition of the penalty after considering Jio Payments’ reply to the notice.