RBI penalizes Equitas Small Finance Bank
The bank regulator Reserve Bank of India has imposed a fine of Rs. 10 lakhs on Equitas Small Finance Bank (SFB) as the company was selling mutual fund, pension and insurance products without taking approval from the regulator.
At the time of issuing the banking license, RBI has imposed certain conditions which were violated by SFB. RBI had issued a notice to the bank on January 18, 2018 to show cause as to why penalty should not be imposed on it. Post oral submissions and hearing that the charge of non-compliance with one of the licensing conditions stipulated by RBI warranted imposition of monetary penalty.
On September 2015, RBI has issued licenses to 10 entities including Equitas Small Finance Bank(SFB) to provide basic banking services like accepting deposits and lending it to small and marginal farmers, micro and small industries.
Equitas Small Finance Bank is the subsidiary of Equitas Holding and on Fridays the stock opened at Rs. 140.25 and at 10:37 hours, the stock was quoting at Rs. 141.50 per share.