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RBI Imposes Penalties on ESFBL and IPPB for Regulatory Violations.

Banking & Finance | Dated: 05 Feb 2025

In February 2025, the Reserve Bank of India (RBI) imposed penalties on Chennai (Tamil Nadu) based Equitas Small Finance Bank Limited (ESFBL) and New Delhi (Delhi) based India Post Payments Bank Limited (IPPB) for non-compliance with regulatory guidelines.

🎯 Key Highlights:

- ESFBL was fined Rs 65 lakh for violating directions on 'Levy of Foreclosure Charges/Pre-payment Penalty on Floating Rate Term Loans' and 'Credit Flow to Agriculture – Collateral-free Agricultural Loans.'

💡 Other Important Facts:

(i) IPPB was penalized Rs 26.70 lakh for deficiencies in adhering to 'Customer Service in Banks' norms.
(ii) Additionally, a penalty of Rs 3.10 lakh was imposed on Chennai-based Aptus Finance India Private Limited for contravening certain provisions related to Non-Banking Financial Companies (NBFCs).

📚 Test Your Knowledge:

Which regulatory body recently imposed penalties on Equitas Small Finance Bank Limited (ESFBL) and India Post Payments Bank Limited (IPPB) for non-compliance with guidelines?

Correct Answer: RBI

🚀 Quick Recap:

About RBI

Governor : Sanjay Malhotra
Headquarter : Mumbai