RBI imposes monetary penalty on LIC Housing Finance Limited

New Delhi: The Reserve Bank of India (RBI) has, by an order dated March 27, 2024, imposed a monetary penalty of Rs 49,70,000/- (Rupees Forty-Nine Lakh Seventy Thousand only) on LIC Housing Finance 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.

The penalty has been imposed in the exercise of powers vested in RBI conferred under section 52A of the National Housing Bank Act, 1987.

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The statutory inspection of the company was conducted by the National Housing Bank with reference to its financial position as on March 31, 2022.

Based upon the supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the company advising it to show cause as to why a penalty should not be imposed on it for its failure to comply with the said directions.

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The company did not comply with certain provisions of the Fair Practices Code contained in the said directions.

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. 

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