RBI imposes penalty on IDFC First Bank, LIC Housing Finance
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The Reserve Bank of India (RBI) has imposed a fine of Rs 1 crore on IDFC First Bank and Rs 49.70 lakh on LIC Housing Finance for violation of certain rules.
The central bank said in a statement on Friday that the penalty has been imposed on IDFC First Bank for non-compliance with certain directions on ‘Loans and Advances – Statutory and Other Restrictions’.
In another statement, the RBI said 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.
In both cases the fines have been imposed on deficiencies in regulatory compliance. It is not intended to affect the validity of any transaction or agreement with the respective customers. Meanwhile, the RBI has canceled the certificates of registration (CoR) of four non-banking finance companies (NBFCs) Kundals Motor Finance, Nitya Finance, Bhatia Hire 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 registration certificates.
Disclaimer: IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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