RBI imposed huge fine on the bank, do you have an account in this bank?.. Know why this action was taken

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RBI imposed huge fine on the bank, do you have an account in this bank?.. Know why this action was taken
RBI imposed huge fine on the bank, do you have an account in this bank?.. Know why this action was taken

RBI said that this penalty has been imposed for violation of certain provisions of the Non-Banking Financial Company – Housing Finance Company, Guidelines, 2021.

After Paytm, now the Reserve Bank has taken action against an NBFC (Non Banking Financial Company). The Reserve Bank has imposed a fine of Rs 5 lakh on Bajaj Housing Finance for non-compliance with certain regulatory provisions.

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The Reserve Bank of India (RBI) said in a statement on Friday that this penalty has been imposed for violation of certain provisions of the Non-Banking Financial Company – Housing Finance Company, Guidelines, 2021.

Did not seek permission from RBI

According to the statement, a statutory inspection of the company was conducted by the National Housing Bank with regard to its financial position as on March 31, 2022. RBI said that the Pune company did not take prior written permission from RBI for the change in management. Under this change, more than 30 percent of directors changed except independent directors.

However, the central bank said the penalty is based on deficiencies in regulatory compliance and is not intended to affect the validity of any transaction or agreement entered into by the company with its customers.

Let us tell you that earlier on January 31, 2024, the Reserve Bank of India had issued an order to Paytm that after February 29, existing customers should also be banned from adding amounts to their accounts.

A report said that Paytm committed several violations of regulatory norms, including rules related to money laundering and related party transactions. Surprisingly, despite continuous warnings from RBI, Paytm did not pay attention to this. After this, the banking regulatory body gave this strict order regarding Paytm Payments Bank Limited.

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