RBI Fines Equitas Small Finance Bank, India Post Payments Bank, and Aptus Finance ₹94.80 Lakh for Compliance Violations

The Reserve Bank of India (RBI) has imposed penalties totaling ₹94.80 lakh on Equitas Small Finance Bank, India Post Payments Bank, and Aptus Finance India for regulatory non-compliance. Equitas was fined ₹65 lakh for improper foreclosure charges and collateral security on loans, while India Post Payments Bank received a ₹26.70 lakh penalty for upgrading accounts without customer consent. Aptus Finance was fined ₹3.10 lakh for failing to obtain prior RBI approval for management changes.

CONTENTS:

• RBI Imposes Penalties on Equitas Small Finance Bank, India Post Payments Bank, and Aptus Finance for Regulatory Violations
• RBI Penalizes India Post Payments Bank ₹26.70 Lakh for Customer Service Non-Compliance
• RBI Fines Equitas Small Finance Bank, India Post Payments Bank, and Aptus Finance India a Total of ₹94.80 Lakh for Compliance Violations
• India Post to Evolve into a Major Logistics Provider

RBI Fines Equitas Small Finance Bank, India Post Payments Bank, and Aptus Finance ₹94.80 Lakh for Compliance Violations

RBI Imposes Penalties on Equitas Small Finance Bank, India Post Payments Bank, and Aptus Finance for Regulatory Violations

RBI Fines Equitas Small Finance Bank The Reserve Bank of India (RBI) announced on Friday that it has imposed penalties on Equitas Small Finance Bank, India Post Payments Bank, and Aptus Finance India Pvt Ltd for regulatory non-compliance.

Equitas Small Finance Bank has been fined ₹65 lakh for failing to adhere to guidelines related to the levy of foreclosure charges on floating rate term loans and collateral-free agricultural loans.

India Post Payments Bank received a penalty of ₹26.70 lakh for non-compliance with directives concerning customer service in banks.

Additionally, Aptus Finance India Pvt Ltd has been penalized ₹3.10 lakh for violating certain norms applicable to non-banking financial companies.

The RBI clarified that these penalties are based solely on regulatory deficiencies and do not question the validity of any transactions or agreements between these entities and their customers.

RBI Penalizes India Post Payments Bank ₹26.70 Lakh for Customer Service Non-Compliance

RBI Fines Equitas Small Finance Bank The Reserve Bank of India (RBI), through an order dated January 15, 2025, has imposed a monetary penalty of ₹26.70 lakh on India Post Payments Bank Limited for failing to comply with certain RBI directives on ‘Customer Service in Banks.’ The penalty was levied under the powers granted to the RBI by Section 47 A(1)(c) in conjunction with Section 46(4)(i) of the Banking Regulation Act, 1949.

As part of its supervisory evaluation, the RBI conducted a statutory inspection of the bank based on its financial position as of March 31, 2023. Following this review, the RBI identified instances of non-compliance and issued a notice to the bank, requiring it to explain why a penalty should not be imposed.

After reviewing the bank’s response, additional submissions, and oral representations made during a personal hearing, the RBI concluded that the bank had upgraded certain Savings Bank accounts without obtaining explicit customer consent—either in writing or through other means—and subsequently applied annual charges after upgrading those accounts.

The RBI clarified that the penalty is solely for regulatory deficiencies and does not question the legitimacy of any transactions or agreements made between the bank and its customers. Additionally, this action does not preclude further measures the RBI may take against the bank.

RBI Fines Equitas Small Finance Bank, India Post Payments Bank, and Aptus Finance India a Total of ₹94.80 Lakh for Compliance Violations

RBI Fines Equitas Small Finance Bank The Reserve Bank of India (RBI) has imposed monetary penalties totaling ₹94.80 lakh on Equitas Small Finance Bank Ltd, India Post Payments Bank Ltd, and Aptus Finance India Pvt Ltd, a non-banking financial company (NBFC), for failing to adhere to regulatory directives. Among them, Equitas Small Finance Bank faced the highest penalty of ₹65 lakh.

Equitas Small Finance Bank was penalized for not complying with RBI guidelines related to foreclosure charges on floating rate term loans and collateral-free agricultural loans. An RBI inspection revealed that the bank had applied foreclosure charges on certain floating rate term loans meant for purposes other than business and had taken collateral security for some agricultural loans worth ₹1.6 lakh.

India Post Payments Bank received a fine of ₹26.70 lakh for breaching customer service regulations. The bank upgraded some savings accounts without obtaining written or explicit consent from customers and later imposed annual charges on those upgraded accounts.

Aptus Finance India was fined ₹3.10 lakh for violating NBFC regulations. The company failed to obtain prior written approval from RBI before implementing management changes that resulted in over 30% of its directors (excluding independent directors) being replaced.

RBI clarified that these penalties were imposed due to regulatory compliance deficiencies and do not impact the validity of any transactions or agreements made by these institutions with their customers.

India Post to Evolve into a Major Logistics Provider

RBI Fines Equitas Small Finance Bank The Indian government is set to transform India Post into a large-scale logistics company, aiming to boost its revenue by 50-60% over the next three to four years, as stated by Communications Minister Jyotiraditya Scindia in September last year.

With a vast network of 150,000 rural post offices and 240,000 Dak Sevaks, India Post is being repositioned as a key driver of the rural economy. The organization will play a crucial role in public logistics while expanding services through India Post Payments Bank. These services will include rural community hub colocation, institutional account management, direct benefit transfers, cash withdrawals, and EMI collection. Additionally, the government plans to introduce credit services for micro-enterprises, insurance, and assisted digital solutions for rural areas.

For the financial year 2025-26, the department has been allocated ₹27,099 crore, an increase from the revised estimate of ₹25,793 crore for FY25.

Experts highlight that this strategic shift will help bridge supply chain gaps for MSMEs, agricultural entrepreneurs, and rural artisans. According to Amit Vatsyayan, leader for agriculture, livelihood, social, and skills at EY India, investments in last-mile delivery technology and workforce upskilling in digital and logistics management will be crucial in realizing India Post’s full potential and promoting inclusive economic growth.

Currently, India Post generates an annual turnover of approximately ₹12,000 crore. The government’s long-term vision includes leveraging BharatNet to enhance high-speed internet access in rural regions. Under this initiative, broadband connectivity will be extended to all government-run secondary schools and primary healthcare centers. So far, 214,323 Gram Panchayats (GPs) have been connected, and 1.2 million fiber-to-the-home (FTTH) connections have been established.