RBI fines Airtel Payments Bank Rs 5 crore for opening accounts without customer consent
The central bank accused the company of violating operating guidelines and Know Your Customer norms.
The Reserve Bank of India on Friday fined the Airtel Payments Bank Rs 5 crore for violating operating guidelines and Know Your Customer norms.
The central bank said it had received complaints that Airtel Payments Bank had opened accounts for customers without any clear or specific consent from them, after which its officers made supervisory visits to its offices between November 20 and November 22, 2017.
The RBI said its supervisory visits and examination of other relevant documents revealed that Airtel Payments Bank had violated the central bank’s Operating Guidelines for Payments Banks and its KYC norms.
The central bank then sent a show cause notice to Airtel Payments Bank on January 15, asking why a penalty should not be imposed. After receiving the bank’s reply, the RBI decided to impose the fine.