Fino Payments Bank Hit With Penalty Worth Rs 29.60 Lakhs

The Reserve Bank of India (RBI) has issued a penalty order of Rs 29.60 lakhs to the Fino Payment Bank Limited. The bank has informed about this penalty to the stock exchanges, Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The order was received by the bank on June 20, 2025.

During RBI’s inspection for Supervisory Evaluation (ISE 2024), it was found that in 4 customer accounts, the End of Day (EOD) balance had exceeded the Rs 2 lakh limit set by RBI for payments banks during the period from February 2023 to November 2023. EOD is the total amount of money in a bank account at the end of a business day. The RBI has put a limit on the EOD balance. As per the RBI’s guidelines, the maximum end-of-day balance a customer can have is Rs 2 lakh.

Since the bank has violated this guideline, the RBI issued a show cause notice to ask them why the penalty should not be imposed for this violation in April 2025 and held a hearing in June 2025. However, after reviewing everything, the RBI issued a penalty order of Rs 29.60 lakhs. The impact on the Bank’s financial, operational and other activities is the penalty amount of Rs 29.60 lakhs.

The bank has mentioned this in the disclosure that it has already identified this issue and made changes to fix the problem in November 2023, even before the RBI’s inspection took place, and therefore, no further legal action would be taken.