Reserve Bank of India imposes monetary penalty on Equitas Small Finance Bank Limited

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹10 lakh on Equitas Small Finance Bank Limited on March 01, 2018. RBI said the bank had not complied with one of the licensing conditions attached to its banking licence, because it undertook the rollout of Mutual Fund units, Pension products, Insurance products, and portfolio management services without obtaining prior approval from RBI. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, after a show-cause notice, the bank's reply, and oral submissions were considered.