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Action of Reserve Bank of India: Reserve Bank of India has imposed a fine of Rs 28.30 lakh on SG Finserv Limited. The company has been fined for non-compliance with certain conditions attached to the registration certificate. SG Finserv was formerly known as Mungipa Securities. RBI keeps a watch on non-compliance issues of financial institutions from time to time and also takes action like penalty to keep a check on the companies and banks.
Reserve Bank imposes fine of Rs 28.30 lakh on SG Finserv
The RBI on Monday said it has found non-compliance with specific conditions relating to Certificate of Registration (CoR) disclosed by the company in its financial statements for the financial year 2022-23, among other things. The Reserve Bank of India said in a statement that the company took money from people in the form of deposits and gave loans even after not following the specific conditions in the CoR issued.
Arunachal Pradesh Gramin Bank was also fined Rs 14 lakh
The Reserve Bank has also imposed a fine of Rs 14 lakh on Arunachal Pradesh Gramin Bank. This penalty has been imposed on the bank for strengthening financial norms and non-compliance with certain 'Know Your Customer' (KYC) instructions. Such mistakes keep happening in small or rural banks but RBI is the regulator of banks and it keeps taking action from time to time.
RBI action on three other cooperative banks
Apart from this, penalty has also been imposed on three other co-operative banks for violation of certain norms. These banks are District Co-operative Central Bank Limited-Bhind, Madhya Pradesh, The Urban Co-operative Bank Limited Dharangaon, Maharashtra and Shri Kalahasti Co-operative Town Bank Limited-Andhra Pradesh.
The Reserve Bank said that this penalty has been imposed on the basis of deficiencies in regulatory compliance. RBI does not intend to adjudicate on the validity of any transaction or agreement entered into by these institutions with their customers.