RBI imposed huge fine on LIC and IDFC, know the reason
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rbi: The Reserve Bank of India has once again tightened its grip on banks and financial institutions violating the rules. This time the apex bank has imposed a huge fine on IDFC First Bank and LIC Housing Finance. It is being told that the bank has imposed a fine of Rs 1 crore on IDFC First Bank and Rs 49.70 lakh on LIC Housing Finance. According to the information, the penalty has been imposed on IDFC First Bank for non-compliance of certain instructions on ‘Loans and Advances – Statutory and Other Restrictions’. In another statement, the RBI said that the penalty has been imposed on LIC Housing Finance for non-compliance with certain provisions of the ‘Non-Banking Financial Companies – Housing Finance Companies (Reserve Bank) Guidelines, 2021’ issued by the RBI.
Customers will not be affected
The Reserve Bank has taken action against both the financial institutions after finding deficiencies in following some rules related to bank loans and advances. However, this decision of RBI will not have any impact on the transactions or agreements of customers of financial institutions. This will provide relief to customers.
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Five NBFCs returned their licenses
RBI has canceled the certificates of registration (COR) of four non-banking finance companies (NBFCs) Kundals Motor Finance, Nitya Finance, Bhatia Higher Purchase and Jeevanjyoti Deposits and Advances. After this these companies can no longer do NBFC business. At the same time, five other NBFCs – Growing Opportunity Finance (India), Invel Commercial, Mohan Finance, Saraswati Properties and Quikr Marketing have returned their NBFC business licenses to the apex bank. Different reasons have been given by all NBFCs for returning the license.
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