MCA prescribes fee payable for registration of offices (See 'Dashboad') Trademark Act - when it is prima facie clear that use of trademark 'PEPSI' by defendant was mala fide and with dishonest intention to trade upon reputation & goodwill of plaintiff, same calls for permanent injunction orders in favour of plaintiff: HC (See 'Legal Desk') MCA notifies October 05, 2018 as date of enactment of Rules for appointment & qualification of directors (See 'Dashboard') Govt amends Companies (Corporate Social Responsibility Policy) Rules, 2014 (See 'Dashboard') Govt amends Limited Liability Partnership Rules, 2009 (See 'Dashboard') Companies Act - When Respondent's challenge to constitutional validity of provisions of Companies Act, 2013 was only limited to grant of interim relief by way of release from Judicial custody, decision of High Court to held provisions apart from sections 212(6)(ii) & 212(7) as ultra vires is unsustainable: SC (See 'Legal Desk') Trademarks Act - Disclaimer regarding usage of GOLD FLAKE contained in Trademark registration certificate of Plaintiff and also price variation between cigarette manufactured by both parties cannot be excuse for defendant to justify alleged use of deceptively similar Trademark: HC (See 'Legal Desk') Know Your Client requirements for Foreign Portfolio Investors (FPIs) (See 'Dashboard') Eligibility conditions for Foreign Portfolio Investors (FPIs) (See 'Dashboard') SEBI Act - Veto rights accrue to Noticee, to protect value of their shareholding in USL, cannot be held similar to controlling interest as defined under regulation 2(1)(e) of SAST Regulations: SEBI (See 'Legal Desk') SAIL's EBIDTA rises to Rs 5200 Crore (See 'Corf Brief') NCLT allows Shivinder to withdraw plea against brother Tariff negotiations with US underway: Steel Minister WPI inflation drops to 4-month low of 4.53 % in August Govt amends Schedule V of Companies Act, 2013 (See 'Dashboard') Govt notifies sections 66 to 70 of Companies (Amendment) Act, 2017 w.e.f. September 12, 2018 (See 'Dashboard') Govt amends Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014 (See 'Dashboard') Copyright Act - Considering philanthropic & spiritual nature of literary work involved and since parties has requested to dispose of suit, where defendant is ready to suffer injunction, matter is liable to be decreed in favour of plaintiff by way of damages only: HC (See 'Legal Desk') Companies Act - Section 164 of Companies Act 2013 for disqualification of directors for non filing of return for continuous period of three FYs was notified w.e.f April 1, 2014 and thus, ROC is not justified in taking first FY from April 1, 2013 to calculate period of default: HC (See 'Legal Desk') Fugitive Economic Offenders Act - a step in the right direction (See 'CORP EINSICHT') MCA notifies Rules to empower shareholders in deciding salary of managerial staff (See 'Corpbrief') Govt appoints Ms Tajinder Mukherjee, GM, NIACL as CMD of NICL (See 'Dashboard') Govt appoints Mr Girish Radhakrishnan, GM, NIACL, as CMD of UIICL (See 'Dashboard') Govt scraps need for approval regarding remuneration to managerial personnel beyond individual limits (See 'Corpbrief') Trademarks Act - Word 'PARAS' has acquired distinctiveness and is well known in area of milk & milk products, therefore, unauthorized use of same in respect of identical items amounts to violation under trademarks laws and constitute passing off: HC (See 'Legal Desk') SEBI Act - On failure to exercise proper due diligence in ensuring adequacy of disclosures for advancement of ICDs by group company in offer document of IPO, penalty is attracted: SEBI (See 'Legal Desk') GST - More needs to be done to incentivise 'sluggish' compliance! (See 'Cob(Web)' in 'TIOL') SIDBI-SKDRDP sign MoU to enhance credit delivery to micro enterprises (See 'Corpbrief') IEPF inks MoU with CSC to promote investor education (See 'Corpbrief') India hikes ethanol price by up to 25% Modi to hold a meeting this weekend over rupee & oil prices Govt amends National Institute of Design Act to include 4 new Institutions (See 'Corpbrief')

RBI takes punitive action against Airtel Payments Bank

Published: Mar 12, 2018

By TIOLCORPLAWS News Service

MUMBAI, MAR 12, 2018: THE RBI has imposed a monetary penalty of Rs 50 million on Airtel Payments Bank Ltd for contravening the ‘Operating Guidelines for Payments Banks' and directions on KYC norms.

The action was based on deficiencies in regulatory compliance and was not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

Based on the complaints and adverse media reports alleging that the bank had opened customer accounts without a clear and specific consent of the customers, a supervisory visit to the bank was undertaken by RBI between November 20 and 22, 2017, which revealed contraventions of ‘Operating Guidelines for Payments Banks' and the directions on KYC norms. Thereafter, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance. After considering the bank's reply and oral submissions made in the personal hearing, RBI came to the conclusion that such charges of non-compliance with RBI guidelines and directions were substantiated and warranted imposition of monetary penalty.

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