RBI asks fintech firms, digital payment cos to ensure responsible innovation
RBI Governor Sanjay Malhotra on Thursday asked fintech firms and digital payment companies to ensure responsible innovation and better compliance.
The Reserve Bank of India on Tuesday issued a show-cause notice and penalised three cooperative banks for non-submission of returns under Section 27 (2) of the Banking Regulation Act, 1949.
The three cooperative banks Nesargi Urban Co-operative Bank Limited, Krishna Pattana Sahakar Bank Niyamitha and Ron Taluka Primary Teachers’ Cooperative Credit Bank Limited have sought a personal hearing in response.
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Krishna Pattana Sahakar Bank Niyamitha was fined Rs 40,000 while Nesargi Urban Co-operative Bank Limited and Ron Taluka Primary Teachers’ Cooperative Credit Bank was fined Rs 20,000 each.
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RBI said this action was in exercise of the powers vested in it under the provisions of Section 47 A (1) (c) read with Section 46 (4) of the Banking Regulation Act, 1949 (as applicable to cooperative societies) for non-submission of the returns under Section 27 (2) of the Banking Regulation Act, 1949 (AACS).
“After considering the facts of the case and bank’s representation in the matter, the Reserve Bank came to the conclusion that the violation was substantiated and warranted imposition of penalty, RBI said.
(With input from agencies)
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