RBI has imposed monetary penalty on three financial institutions
This penalty has been imposed in the exercise of powers conferred on RBI under the provisions of section 52A of the National Housing Bank Act, 1987.
The Reserve Bank of India has imposed a monetary penalty of Rs 5,00,000/- (Rupees Five Lakh only) on Muthoot Housing Finance Company Limited (the company) for non-compliance with certain provisions of the 'Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021' issued by RBI relating to 'Governance'.
This penalty has been imposed in the exercise of powers conferred on RBI under the provisions of section 52A of the National Housing Bank Act, 1987.
The statutory inspection of the company was conducted by the National Housing Bank with reference to its financial position as on March 31, 2022.
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Also, the Central Bank has imposed a monetary penalty of Rs 1,06,40,000 (Rupees One crore, Six lakh and Forty thousand only) on Union Bank of India (the bank) for non-compliance with certain directions issued by RBI on ‘Creation of a Central Repository of Large Common Exposures-Across Banks’ and ‘Know Your Customer (KYC)’.
In addition, the RBI has, by an order dated August 08, 2024, imposed a monetary penalty of Rs 1,86,80,000 (Rupees One Crore, Eighty Six Lakh, and Eighty Thousand only) on CSB Bank Ltd for contravention of section 10(1)(b)(ii) of the BR Act, and non-compliance with certain directions issued by RBI on ‘Guidelines on Managing Risks and Code of Conduct in Outsourcing of Financial Services by banks’ and ‘Master Circular on Branch Authorisation’.
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