look news india
New Delhi: The Reserve Bank of India (RBI) has imposed a fine of Rs 1 crore on IDFC First Bank and Rs 49.70 lakh on LIC Housing Finance. According to the Reserve Bank, fine has been imposed on both these financial institutions for ignoring the rules. According to an RBI statement, it has imposed a penalty on private sector IDFC First Bank for making infrastructure loans to a government company in 2016 and 2017. The central bank said the penalty has been imposed on IDFC First Bank for non-compliance with certain instructions. 'Loans and Advances – Statutory and Other Restrictions'. In another statement, the RBI said the penalty has been imposed on LIC Housing Finance for non-compliance with certain provisions of the 'Non-Banking Financial Companies – Housing Finance Companies (Reserve Bank) Guidelines, 2021' issued by the RBI. In both cases the fines have been imposed over deficiencies in regulatory compliance. It is not intended to affect the validity of any transaction or agreement with the respective customers. Meanwhile, the RBI has canceled the certificates of registration (CoR) of four non-banking finance companies (NBFCs) Kundals Motor Finance, Nitya Finance, Bhatia Hire Purchase and Jeevanjyoti Deposits and Advances. After this these companies will not be able to do NBFC business.
Meanwhile, five other NBFCs – Growing Opportunity Finance (India), Invel Commercial, Mohan Finance, Saraswati Properties and Quikr Marketing have returned their registration certificates.
The effect of this action of RBI can be seen on the shares. Last Friday, IDFC Bank shares closed in the green with gains. There is a continuous rise in bank shares. Whereas last week a decline was seen in the shares of LIC. The stock closed with a decline.
