Summary of this article
RBI fined Airtel Payments Bank for disclosure rule violations
Bank failed to report certain complaints in FY25 statements
Penalty follows inspection and review of bank’s compliance
The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 31.80 lakh on Airtel Payments Bank for non-compliance with certain directions issued by the RBI on 'Disclosures in Financial Statements.' RBI issued the penalty on the bank on March 30, 2026.
RBI imposed the penalty on the bank under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949. The regulator can impose this penalty if the bank fails to comply with the directions issued by the RBI.
Inspection And Issue Identified
RBI issued the Statutory Inspection for Supervisory Evaluation (ISE 2025) on the bank upon inspecting the financial position of the bank up to March 31, 2025.
During the inspection, RBI noticed the bank did not comply with the directions on disclosures in financial statements, meaning the bank did not disclose the required information in its official financial statements.
The bank did not disclose the required information related to customer complaint details in the financial statements for the financial year 2024-25. It is the duty of the bank to disclose this information to the stakeholders to understand the bank's performance in handling customer complaints.
Notice And Bank's Reply
Once the issue was identified, RBI sent a notice to the bank, requesting to provide a justification for why a penalty should not be levied for the non-compliance.
The bank sent additional information and made a representation during a personal hearing. This gives the bank an opportunity to make representations.
RBI, after reviewing the bank's response and other relevant records, noted that the issue of non-disclosure of complaints still remained. The central bank concluded that the bank had not made the disclosures in line with the requirements. Based on this, the monetary penalty of Rs 31.80 lakh was imposed on the Airtel Payments Bank.
What The Penalty Means
RBI made it clear that this action only pertains to the compliance aspect. This action does not impact the validity of any agreements or transactions that the bank has with its customers.
RBI further stated that this action does not restrict them from taking any further action in the future, if needed.
Why Disclosures Matter
Banks must disclose detailed information in the financial statements. This includes information about complaints, financial performance, and risks, which must be shared in the financial statements to ensure transparency. This provides a clear view to the readers of the financial statements.
However, in this case, the bank did not disclose the complaint information. This means that the financial statements for FY25 were not fully comprehensive.
Ongoing Supervision By RBI
RBI regularly monitors banks through inspections and reviews. If it finds that the rules are not being followed, it can issue notices and impose penalties. The payment banks also have to follow these rules like other banks. They have to ensure that the reporting is accurate and complete.
