- 9 March 2024
RBI Imposes Fines on Bajaj Finance, Union Bank of India, and RBL Bank
The Reserve Bank of India (RBI) has taken action against Bajaj Finance, Union Bank of India, and RBL Bank, levying fines due to their failure to adhere to regulatory guidelines.
RBI’s announcement on October 13, highlighted that these financial institutions were found in violation of specific instructions, resulting in penalties being imposed as follows:
Bajaj Finance: A penalty of Rs 8.50 lakh was imposed on Bajaj Finance for non-compliance with RBI directives and for delays in reporting certain fraudulent activities to the RBI.
Union Bank of India: Union Bank of India faced a penalty of Rs 1 crore due to non-compliance with RBI guidelines.
The bank had sanctioned term loans to certain corporations without conducting adequate due diligence regarding the project’s revenue sources, thereby disregarding the RBI’s established guidelines.
RBL Bank: RBL Bank was fined Rs 64 lakh for its failure to collect the required declaration in Form B from shareholders for the financial years ending on March 31, 2018, March 31, 2019, and March 31, 2020.
The bank also didn’t provide the RBI with a certificate confirming the ‘fit and proper’ status of a significant shareholder by the end of September for those three financial years, resulting in the penalty.
These penalties serve as a reminder of the importance of adhering to RBI’s rules and regulations within the banking sector to maintain financial stability and protect the interests of both institutions and their clients.
