Reserve Bank of India has imposed a monetary penalty of Rs 10 million on Reliance Jio Payments Bank Limited for non-compliance with RBI directions on timely submission of application in the case of re-appointment of managing director and chief executive officer (MD & CEO) under Section 35B of the Banking Regulation Act, 1949 (the Act).

As per RBI guidelines, a bank is required to submit an application under Section 35B of the Act in the case of reappointment of MD & CEO of the bank four months prior to the date on which the term of the current position holders was to expire. However, Reliance Jio Payments Bank is believed to have submitted the said application less than a month prior to the designated date.

Following this a show cause notice was issued to the bank asking it as to why it should not be penalised for failing to comply with the directions issued by RBI.

After assessing Reliance Jio Payments Bank’s response to the notice, RBI decided to go ahead with the imposition of the penalty.