Mumbai : The Reserve Bank of India (RBI) has imposed a penalty of Rs 5 crore on Airtel Payments Bank for violating operating guidelines and Know Your Customer (KYC) norms.
“The RBI has imposed, on March 7, 2018, a monetary penalty of Rs 50 million on Airtel Payments Bank (the bank) for contravening the ‘Operating Guidelines for Payments Banks’ and directions issued by RBI on Know Your Customer (KYC) norms,” the central bank said in a statement.
The fine was imposed after RBI scrutinised the bank’s documents relating to opening of accounts without any specific or clear consent from the customers.
Based on the complaints and adverse media reports alleging that the bank had opened customer accounts without a clear/specific consent of the customers, RBI conducted a supervisory visit to the bank from November 20-22, 2017.
According to reports, more than 23 lakh customers had reportedly received as many as Rs 47 crore in their Airtel bank accounts, which they did not know had been opened.
Bharti to raise Rs 3,000 cr through bonds
Bharti Airtel plans to raise up to Rs 3,000 crore through non-convertible debentures for refinancing debt and meeting spectrum liabilities.
A meeting of committee of directors is “scheduled on Tuesday, March 13, 2018 to inter-alia consider and subject to market and other conditions, issue listed, unsecured, rated, redeemable, non-convertible debentures (NCDs Series I and II) on private placement basis aggregating up to Rs 3,000 crore”, the company said.
Besides, the board will meet on Monday to consider fund raising opportunity for the company.
Referring to both the proposed meetings, a Bharti Airtel spokesperson said: “It is clarified that the Company is seeking approvals in the usual course of business. Any funds raised under such approvals, if granted, are to be used for routine treasury activities including refinancing of debt and spectrum liabilities.”
As on December 31, 2017, the company’s consolidated net debt stood at Rs 91,714 crore.