RBI imposes penalty of Rs 8.50 lakh on Bajaj Finance
The company received a notice instructing it to provide justification as to why a penalty shouldn’t be levied for its failure to follow the instructions set forth in the notification, according to the central bank
Reserve Bank of India (RBI) imposed Rs 8.50 lakh penalty on Bajaj Finance. The fine was issued because the company did not follow RBI instructions to the extent of failing to report certain frauds to RBI or reporting them to RBI with undue delay.
The company received a notice instructing it to provide justification as to why a penalty shouldn’t be levied for its failure to follow the instructions set forth in the notification, according to the central bank.
The RBI continued by stating that it had concluded that the charge of non-compliance with the aforementioned RBI directions was substantiated and warranted imposition of a monetary penalty, to the extent of such non-compliance, after taking into account the company’s response to the notice, additional submissions made by it, and oral submissions made during the Personal Hearing.
In two different circulars, the RBI stated that it had fined Union Bank of India Rs 1 crore for failing to follow instructions regarding “Loans and Advances – Statutory and Other Restrictions.” As a result of failing to acquire an annual declaration in Form B from one of its main shareholders within a month of the end of the three fiscal years ending on 31 March 2018, 31 March 2019 and 31 March 2020, RBL Bank has also been fined Rs 64 lakh.
