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Giving up payments bank licence may attract fine

epaper Updated: May 24, 2016 10:07 IST

MUMBAI: Reserve Bank of India (RBI) deputy gover nor SS Mundra on Monday came down on payments bank applicants who are dropping plans after being given a licence, hinting that such move could call for strong action against the applicants.

Last week, a consortium comprising Dilip Shanghvi & Family, IDFC Bank and Telenor Financial Services, who had jointly applied for a payments bank, opted out without giving a reason. This came two months after Cholamandalam too dropped its plans for floating a payments bank. RBIhad given 11 payments bank licences last year.

“Presently, we don’t have scope of charging a serious processing fee that can be forfeited if this kind of exercise is done,” Mundra said. “But if we learn by experience, probably we can do something that can help in augmenting our revenue substantially,” he added in a lighter vein.

“Yes, we would certainly feel a little aggrieved because a lot of effort from RBI goes in processing these applications. So, having done that, if they don’t materialise, that’s the only point (of disappointment),” the deputy governor said on the sidelines of a banking event.

Mundra refused any chances of replacement. “The question of replacement will come if you have a pre-determined number… that was not the case.”

Further, the deputy governor raised concerns on the Jan Dhan accounts being “vulnerable to frauds” and that they can be misused where an idle account gets used for receiving and transferring large funds.

First Published: May 24, 2016 05:55 IST