Reserve Bank of India (RBI) has imposed Rs 8.50 lakh penalty on Bajaj Finance for rule violations. The fine has been imposed as the company has not complied with the RBI directions to the extent of not reporting and delay in reporting of certain frauds to RBI.
A notice was issued to the company advising it to show cause as to why penalty should not be imposed for its failure to comply with the RBI directions, as stated therein, the central bank said.
RBI further said that after considering the company’s reply to the notice, additional submissions made by it and oral submissions made during the Personal Hearing, it came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty, to the extent of such non-compliance with such directions.
In two separate circulars, RBI said it has imposed a monetary penalty of Rs 1 Crore on Union Bank of India for non-compliance with directions issued on ‘Loans and Advances – Statutory and Other Restrictions’.
RBL Bank has also been penalised for Rs 64 lakh as bank failed to obtain annual declaration in Form B from one of its major shareholders, within one month of the close of the three financial years ending on March 31, 2018, March 31, 2019 and March 31, 2020.
Also Read: RBI imposes monetary penalty on Union Bank of India, RBL Bank for non-compliance
