LIC Housing Finance: This penalty has been imposed by RBI for not following the rules. Apart from this, the Reserve Bank has also canceled the registration of four NBFCs.
RBI Penalty on IDFC First Bank: Reserve Bank of India (RBI) has imposed a fine of Rs 1 crore on IDFC First Bank for violating the rules. Apart from this, the Reserve Bank has imposed a fine of Rs 49.70 lakh on LIC Housing Finance. In a statement from the central bank, it was said that the penalty was imposed on IDFC First Bank for not following certain instructions on ‘Loans and Advances – Statutory and Other Restrictions’. Has been.
Penalty imposed for not following the rules
In another statement from RBI, it was said that the penalty on LIC Housing Finance has been imposed for non-compliance of certain provisions of ‘Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Guidelines, 2021’. In both the cases, penalty has been imposed for non-compliance of regulator rules. It is not intended to affect the validity of any transaction or agreement with the respective customers. Recently, RBI had also imposed penalty on public sector SBI and private sector HDFC Bank for not following the rules.
Registration of these four NBFCs has been canceled.
Apart from this, RBI has canceled the registration certificate of four NBFCs Kundals Motor Finance, Nitya Finance, Bhatia Higher Purchase and Jeevanjyoti Deposits and Advances. After cancellation of registration certificate by RBI, 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.
What will be the impact on the customers?
The imposition of fine on IDFC First Bank and LIC Housing has nothing to do with the customers of the bank. The fine has been imposed on the bank for not following the rules. There will be no visible impact of this on bank customers. Let us tell you that the purpose of imposing fine by RBI is not to harm the customers but to motivate the banks to follow the rules and protect the interests of the customers.
