In a significant move, the Reserve Bank of India (RBI) has imposed monetary penalties on Bajaj Finance and RBL Bank for failing to adhere to RBI guidelines.
Bajaj Finance, headquartered in Pune, has been fined Rs 8.50 lakh. RBI acted under the powers granted by the Reserve Bank Guidelines of 2016, specifically ‘Monitoring of Frauds in NBFCs.’
It’s important to clarify that these penalties are related to regulatory non-compliance and do not pass judgment on any transactions or agreements with customers. The penalty order was issued on September 28, 2023.
RBL Bank Faces a Hefty Penalty
On the same day, RBI also imposed a substantial penalty of Rs 64 lakh on RBL Bank for not adhering to RBI guidelines.
The central bank imposed the fine due to violations related to the acquisition of shares of a private sector bank in 2015 and prior approval of voting rights.
This action was taken in accordance with Section 47A (1) (c) of the Banking Regulation Act, 1949.
Union Bank of India Hit with a Rs 1 Crore Penalty
On October 3, 2023, RBI imposed a hefty monetary penalty of Rs 1 crore on Union Bank of India.
This penalty results from the bank’s failure to comply with ‘Loans and Advances – Statutory and Other Restrictions’ guidelines.
RBI’s authority to levy this penalty is derived from the Banking Regulation Act, 1949.
