The Reserve Bank of India (RBI) has imposed a penalty on Jio Payments Bank and DCB Bank for flouting its regulatory norms.

Jio Payments Bank has to cough up Rs 1 crore for non-compliance with RBI directions on timely submission of application of re-appointment of its managing director and chief executive officer under Section 35B of the Banking Regulation Act, 1949.

The bank was required to submit an application on the reappointment of MD & CEO of the bank four months prior to the date on which his term was to expire. However, the bank submitted the application only less than a month prior to that date, the RBI said.

In the case of DCB Bank, RBI stated that the penalty has been imposed under the provisions of Section 47A(1)(c) and Section 46(4)(i) of the Banking Regulation Act, 1949 for failing in regulatory compliance.

The bank was pulled up for non-compliance of RBI's norms on the marketing or distribution of mutual fund and insurance products by banks.

"An off-site examination of the records pertaining to the para-banking activity of the bank was conducted by RBI in a matter related to default on the National Spot Exchange Limited (NSEL)," RBI said. This revealed that DCB Bank had not complied with the regulatory norms.

After considering both banks' reply to the notice, oral submissions made during the personal hearing and examination of additional submissions, RBI concluded the charge of non-compliance with its directions was established and warranted imposition of monetary penalty, the apex bank said.