PFC faces Rs 8.8 lakh fine from RBI for liquidity violation

The New Delhi-based PSU violated provisions outlined in the RBI's "Liquidity Risk Management Framework for Non-Banking Financial Companies and Core Investment Companies."

PFC faces Rs 8.8 lakh fine from RBI for liquidity violation

New Delhi: New Delhi: The Reserve Bank of India on February 6, 2024, imposed a fine of Rs 8.8 lakh (approximately $10,600) on Power Finance Corporation Limited (PFC) for failing to comply with certain regulations related to managing liquidity risk. The New Delhi-based PSU violated provisions outlined in the RBI's "Liquidity Risk Management Framework for Non-Banking Financial Companies and Core Investment Companies."

Read Also : Mines Ministry Inks MoU with Shakti Sustainable Energy Foundation

This penalty has been imposed in the exercise of powers conferred on RBI under the provisions of clause (b) of sub-section (1) of section 58G read with clause (aa) of sub-section (5) of section 58B of the Reserve Bank of India Act, 1934 (RBI Act).

This action is based on the 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.

Read Also : THDC and UJVNL Joint Venture, TUECO inks MoU with Nagar Nigam Haridwar