RBI penalises IDFC First Bank, LIC Housing Finance
The Reserve Bank of India (RBI) has imposed a penalty of Rs 1 crore on IDFC First Bank and Rs 49.70 lakh on LIC Housing Finance for violating certain norms. IDFC First Bank's penalty is for non-compliance with directions on 'Loans and Advances - Statutory and Other Restrictions', while LIC Housing Finance's penalty is for non-compliance with provisions of the 'Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021'. Additionally, the RBI has cancelled the registration certificates of four NBFCs and five NBFCs have surrendered their certificates.
The on Friday said it has imposed a penalty of Rs 1 crore on and Rs 49.70 lakh on for violation of certain norms. The penalty on IDFC First Bank has been imposed for non-compliance with certain directions on 'Loans and Advances - Statutory and Other Restrictions', the central bank said in a statement.In another statement, it said the penalty on LIC Housing Finance has been levied for non-compliance with certain provisions of the 'Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021' issued by .
In both cases, penalties are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by them with their respective customers.
Meanwhile, the RBI has cancelled certificate of registration (CoR) of four NBFCs -- , , , and Jiwanjyoti Deposits and Advances.
The four companies now cannot transact the business of a non-banking financial institution.
Another five NBFCs have surrendered their CoR. These are -- Growing Opportunity Finance (India), , Mohan Finance, , and Quicker Marketing.
Source: Stocks-Markets-Economic Times
