Reserve Bank imposed heavy fine on these 4 banks, 15 NBFCs got place in the upper list, know the whole thing
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reserve Bank of India (Reserve Bank of India) is working in action mode. The apex bank has imposed heavy fine on four banks. This fine has been imposed by banks for ignoring the rules. rbi Said in its order that during investigation it was found that these banks did not follow the guidelines. For this reason they have been fined. The banks on which the Reserve Bank has imposed fine include Baramati Cooperative Bank, Becharaji Citizens Cooperative Bank, Waghodia Urban Cooperative Bank and Viramgam Mercantile Cooperative Bank. Along with this, the Reserve Bank of India has released the list of 15 NBFC companies making a place in the upper layer for the financial year 2024.
How much fine was imposed on which bank?
The Reserve Bank has imposed fine on four banks for different cases of not following the guidelines. If banks still do not follow the rules, fines and sanctions can be imposed. In its order, the apex bank has imposed a fine of Rs 2 lakh each on Baramati Co-operative Bank and Becharaji Citizens Co-operative Bank, while a fine of Rs 5 lakh each has been imposed on Waghodia Urban Co-operative Bank and Viramgam Mercantile Co-operative Bank. However, it will not have any impact on the bank customers. The fine amount has to be paid by the bank from its own funds. In this, the person opening the account does not have to pay any fee on this. Banks will pay their amount in stipulated time.
Non-banking financial companies will have to meet additional regulatory requirements.
The Reserve Bank of India (RBI) said that 15 large non-banking financial companies (NBFCs) such as LIC Housing Finance, Bajaj Finance, Shriram Finance and Tata Sons will be subject to additional regulatory regime. The central bank has classified non-banking financial companies into different levels. These categories are – base level (NBFC-BL), middle level (NBFC-ML), high level (NBFC-UL) and top level (NBFC-TL). The list of fifteen top ranked non-banking financial companies has been released. Apart from LIC Housing Finance, Bajaj Finance, Shriram Finance and Tata Sons, other NBFCs in the list include L&T Finance, Piramal Capital & Housing Finance, Cholamandalam Investment & Finance Company. Apart from this, Indiabulls Housing Finance, Mahindra & Mahindra Financial Services, Tata Capital Financial Services, PNB Housing Finance, HDB Financial Services, Aditya Birla Finance, Muthoot Finance and Bajaj Housing Finance are also included in this list.
The list was upgraded accordingly
According to RBI, TMF Business Services Limited (formerly Tata Motors Finance Limited) has not been included in the list in the current review, despite being eligible as an NBFC-UL as per the scoring methodology. The reason for this is the ongoing business restructuring in the company. There is a prescribed system for identifying NBFCs in the higher category according to their asset size and scoring system. A revised regulatory regime for NBFCs in the context of scale-based regulation (SBR) was issued in October, 2021. Under this, once a non-banking financial company is classified as NBFC-UL, it will be subject to enhanced regulatory requirements. This will be for a period of at least five years from the date of its classification.
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