RBI shock to Airtel Payments Bank, negligence in banking rules proved costly; Fine of ₹31.80 lakh imposed

RBI Action On Airtel Payments Bank: The Reserve Bank of India (RBI) on Monday took strict action against Airtel Payments Bank Limited (Bank). The central bank has imposed a penalty of Rs 31.80 lakh on Payments Bank for non-compliance with certain provisions of directions related to disclosures in financial statements. This penalty has been imposed under the powers vested in the RBI under the provisions of Section 47A(1)(c) and Section 46(4)(i) of the Banking Regulation Act, 1949.

Statutory Inspection and Supervisory Evaluation (ISE 2025) was conducted by RBI assessing the financial position of the bank as on March 31, 2025. The RBI has imposed a penalty of Rs 31.80 lakh on Airtel Payments Bank Ltd (Bank) for non-compliance with certain provisions of directions related to disclosures in financial statements, the central bank said.

RBI’s question to Airtel Payments Bank

On the basis of supervisory findings regarding non-compliance with RBI directions and related correspondence in this regard, notice has been issued to the bank asking it to explain why penalty should not be imposed on it for non-compliance with the said RBI directions. RBI said that after considering the bank’s response to the notice, additional submissions and the arguments made orally during the personal hearing, the RBI found that the allegation made against the bank regarding non-disclosure of certain complaints in the annual financial statements for the financial year 2024-25 was found to be true and the imposition of penalty is appropriate.

‘There will be no impact on customers.’

This action is based on deficiencies in regulatory compliance and is not intended to render any judgment on the validity of any transaction or agreement entered into by the Bank with its customers. The central bank further said that further, the imposition of monetary penalty will not adversely affect any other action initiated by the RBI against the bank.

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Airtel Payments Bank Is an Indian payments bank headquartered in New Delhi. It is a subsidiary of Bharti Airtel. On January 5, 2022, it reserve Bank of India Scheduled Bank status was granted by RBI under the Second Schedule of the RBI Act, 1934.