RBI levies penalty on BoM, Hinduja Leyland Finance, Poonawalla Fincorp | Information on Markets

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RBI levies penalty on BoM, Hinduja Leyland Finance, Poonawalla Fincorp | Information on Markets

The central financial institution has additionally imposed a financial penalty of Rs 10 lakh on Poonawalla Fincorp Ltd. | Picture: Reuters

2 min learn Final Up to date : Aug 17 2024 | 12:03 AM IST


The Reserve Financial institution on Friday stated it has imposed a penalty of Rs 1.27 crore on Financial institution of Maharashtra (BoM) for violating its instructions, together with on Know Your Buyer.


The Reserve Financial institution of India (RBI) has, by an order dated August 8, 2024, imposed a financial penalty of Rs 1.27 crore on Financial institution of Maharashtra for non-compliance with sure instructions issued by RBI on ‘Mortgage System for Supply of Financial institution Credit score’, ‘Cyber Safety Framework in Banks’ and ‘Know Your Buyer’, the central financial institution stated in a press release.


After contemplating the financial institution’s reply to the discover, oral submissions made through the private listening to and examination of further submissions made by it, RBI discovered that the costs towards the financial institution had been sustained, warranting imposition of financial penalty.


Moreover, the RBI has imposed a financial penalty of Rs 4.90 lakh on Hinduja Leyland Finance Ltd for non-compliance with sure provisions of the Know Your Buyer (KYC) Instructions, 2016.


The motion relies on a deficiency in regulatory compliance and isn’t meant to pronounce upon the validity of any transaction or settlement entered into by the corporate with its prospects, it stated in a separate assertion.


The central financial institution has additionally imposed a financial penalty of Rs 10 lakh on Poonawalla Fincorp Ltd for non-compliance with sure provisions of the ‘Non-Banking Monetary Firm – Systemically Vital Non-Deposit taking Firm and Deposit taking Firm (Reserve Financial institution) Instructions, 2016’.


After contemplating the corporate’s reply to the discover, oral submissions made through the private listening to and examination of further submissions made by it, RBI discovered that the next cost towards the corporate was sustained, warranting imposition of financial penalty, RBI stated in a press release.


The corporate charged curiosity on loans from dates previous to the disbursal of those loans, which was opposite to the phrases and circumstances of the loans communicated to the purchasers, it added.

First Revealed: Aug 16 2024 | 8:09 PM IST