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The Reserve Bank of India (RBI) has taken strict regulatory action against IDFC First Bank and LIC Housing Finance, imposing penalties for non-compliance with certain norms. Additionally, the RBI has canceled the certificate of registration of four Non-Banking Financial Companies (NBFCs) and received voluntary surrenders from five other NBFCs.
IDFC First Bank has been fined ₹1 crore for failing to adhere to specific directions related to ‘Loans and Advances – Statutory and Other Restrictions’, as stated by the central bank in a statement. On the other hand, LIC Housing Finance has been penalized ₹49.70 lakh for not complying with provisions outlined in the ‘Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021’.
The penalties imposed by the RBI are a result of deficiencies in regulatory compliance and are not meant to question the validity of any transactions or agreements made by the respective entities with their customers.
Simultaneously, the RBI has taken decisive action by canceling the certificate of registration of four NBFCs. These include Kundles Motor Finance, Nithya Finance, Bhatia Hire Purchase, and Jiwanjyoti Deposits and Advances. Consequently, these companies are no longer permitted to conduct the business of a non-banking financial institution.
Furthermore, five other NBFCs have voluntarily surrendered their certificate of registration. These are Growing Opportunity Finance (India), Invel Commercial, Mohan Finance, Saraswati Properties, and Quicker Marketing.
The regulatory actions by the RBI underscore the importance of strict adherence to regulatory guidelines in the financial sector and demonstrate the central bank’s commitment to maintaining the integrity and stability of the financial system.
Sources By Agencies
