LI Network
Published on: October 16, 2023 at 16:40 IST
The Reserve Bank of India (RBI) has imposed a penalty of Rs 8.50 lakh on Bajaj Finance for breaching regulatory guidelines. The fine has been imposed due to the company’s non-compliance with RBI directives, particularly concerning the reporting and timeliness of reporting certain fraudulent activities to the RBI.
A notice was issued to Bajaj Finance, instructing the company to provide reasons why a penalty should not be imposed for failing to adhere to the RBI’s directives. The central bank stated that, after reviewing the company’s response to the notice, along with additional submissions and oral arguments made during the Personal Hearing, it was determined that the company had indeed violated the RBI’s directives, justifying the imposition of a monetary penalty for such non-compliance.
In two separate circulars, the RBI also announced penalties against other financial institutions. Union Bank of India was penalized Rs 1 crore for failing to comply with directives related to “Loans and Advances – Statutory and Other Restrictions.” RBL Bank incurred a penalty of Rs 64 lakh for not obtaining an annual declaration in Form B from one of its major shareholders within one month of the closure of the financial years ending on March 31, 2018, March 31, 2019, and March 31, 2020.