RBI Penalty : Why did RBI impose a penalty of Rs 1 crore on IDFC First Bank, what will be the impact on customers?

LIC Housing Finance: This penalty has been imposed by RBI for not following the guidelines. Apart from this, the Reserve Bank has additionally canceled the registration of 4 NBFCs.

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RBI Penalty on IDFC First Bank: Reserve Bank of India (RBI) has imposed a nice of Rs 1 crore on IDFC First Bank for violating the guidelines. Apart from this, the Reserve Bank has imposed a nice of Rs 49.70 lakh on LIC Housing Finance. In a assertion from the central financial institution, it was mentioned that the penalty was imposed on IDFC First Bank for not following sure directions on ‘Loans and Advances – Statutory and Other Restrictions’. Has been.

Penalty imposed for not following the guidelines

In one other assertion from RBI, it was mentioned that the penalty on LIC Housing Finance has been imposed for non-compliance of sure provisions of ‘Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Guidelines, 2021’. In each the instances, penalty has been imposed for non-compliance of regulator guidelines. It shouldn’t be meant to have an effect on the validity of any transaction or settlement with the respective prospects. Recently, RBI had additionally imposed penalty on public sector SBI and personal sector HDFC Bank for not following the guidelines.

Registration of these 4 NBFCs has been canceled.

Apart from this, RBI has canceled the registration certificates of 4 NBFCs Kundals Motor Finance, Nitya Finance, Bhatia Higher Purchase and Jeevanjyoti Deposits and Advances. After cancellation of registration certificates by RBI, firms can not do NBFC enterprise. At the similar time, 5 different NBFCs – Growing Opportunity Finance (India), Invel Commercial, Mohan Finance, Saraswati Properties and Quikr Marketing have returned their registration certificates.

What will be the impact on the prospects?

The imposition of nice on IDFC First Bank and LIC Housing has nothing to do with the prospects of the financial institution. The nice has been imposed on the financial institution for not following the guidelines. There will be no seen impact of this on financial institution prospects. Let us let you know that the function of imposing nice by RBI is to not hurt the prospects however to inspire the banks to observe the guidelines and defend the pursuits of the prospects.

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