Money & Banking

RBI levies ₹5 lakh penalty on Shriram City Union Finance

Our Bureau Mumbai | Updated on September 24, 2020 Published on September 24, 2020

The Reserve Bank of India has imposed a monetary penalty of ₹5 lakh on Chennai-based Shriram City Union Finance for non-compliance with its directions on verification of the ownership of gold jewellery contained in NBFC - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 and on reporting of frauds contained in Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016.

“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,” the RBI said in a statement on Thursday.

The statutory inspection of Shriram City Union Finance on its financial position as on March 31, 2018 had revealed non compliance with the RBI directions, following which a notice was issued to the company advising it to show cause as to why penalty should not be imposed for failure to comply with the directions issued by RBI.

“After considering the company’s reply to the notice, oral submissions made during the personal hearing and examination of additional submissions, RBI concluded that the aforesaid charges of non-compliance with RBI directions warranted imposition of monetary penalty,” the RBI said.

Meanwhile, it has also imposed a monetary penalty of ₹50,000 on Sri Satya Sai Nagrik Sahakari Bank Maryadit, Bhopal for non-compliance with directions issued by RBI on director related loans.

The RBI has also imposed a monetary penalty of ₹2,000 on Nashik Jillha Girna Sahakari Bank Ltd., Nashik for contravention of Section 15 of the Credit Information Companies (Regulation) Act, 2005 (CIC Act).

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Published on September 24, 2020
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