RBI slaps fines on IDFC First Bank and LIC Housing Finance for non-compliance
Mumbai: The Reserve Bank on Friday said that it has fined IDFC First Bank Rs 1 crore and LIC Housing Finance Rs 49.70 lakh for breaching specific regulations. The penalty on IDFC First Bank was levied due to failure to adhere to certain directives regarding 'Loans and Advances - Statutory and Other Restrictions', according to the central bank’s statement.
In a separate statement, it was mentioned that the penalty imposed on LIC Housing Finance is due to its failure to comply with specific provisions outlined in the 'Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021' issued by the RBI.
In both instances, the penalties were imposed because of shortcomings in regulatory adherence and are not meant to pass judgment on the validity of any transactions or agreements made by these institutions with their customers.
The RBI has also revoked the certificate of registration (CoR) of four NBFCs, namely Kundles Motor Finance, Nithya Finance, Bhatia Hire Purchase, and Jiwanjyoti Deposits and Advances. Consequently, these entities are prohibited from conducting non-banking financial institution activities.
Five other NBFCs have also voluntarily surrendered their CoR. These include Growing Opportunity Finance (India), Invel Commercial, Mohan Finance, Saraswati Properties, and Quicker Marketing.
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