Money & Banking

RBI imposes ₹6 lakh penalty on Hewlett-Packard Financial Services

Our Bureau Mumbai | Updated on August 04, 2021

Non-compliance with the statutory directions on submitting credit information to Central Repository of Information on Large Credits and credit data to Credit Information Companies were the reasons for penalty imposition.

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹6 lakh on Bengaluru-based Hewlett-Packard Financial Services (India) Private Ltd.

RBI, in a statement, said the statutory inspection of the company, concerning its financial position as on March 31, 2019, revealed, inter alia, non-compliance with the statutory directions on (i) submission of credit information to Central Repository of Information on Large Credits and (ii) submission of credit data to Credit Information Companies.

In furtherance to the same, a notice was issued to the company advising it to show cause why penalty should not be imposed on it for failure to comply with the directions issued by RBI, the statement added.

After considering the company’s reply to the notice, oral submissions made during the personal hearing and examination of additional submissions made by it, RBI said it concluded that the charge of non-compliance with its directions was substantiated and warranted imposition of monetary penalty.

The central bank said the penalty has been imposed in exercise of powers vested in it under the provisions of the Reserve Bank of India Act, 1934 and the Credit Information Companies (Regulation) Act, 2005, taking into account the failure of the company to adhere to the aforesaid directions issued by RBI.

“This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers,” it added.

Published on August 03, 2021

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