RBI imposed heavy penalty on IDFC First Bank and LIC Housing Finance, know what will be the impact on customers?

New Delhi. The Reserve Bank of India (RBI) monitors the functioning of all the banks or NBFCs in the country. Whenever a bank ignores RBI rules and does its own thing, the central bank can impose a fine on it. In this series, the Reserve Bank of India has imposed a fine of Rs 1 crore on IDFC First Bank and Rs 49.70 lakh on LIC Housing Finance for violation of some rules.

The penalty has been imposed on IDFC First Bank for non-compliance with certain directions on 'Loans and Advances – Statutory and Other Restrictions', the RBI said in a statement on Friday. 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.

Will customers be affected?

In both cases the fines have been imposed for deficiencies in regulatory compliance. It is not intended to affect the validity of any transaction or agreement with the respective customers.

RBI cancels registration certificates of 4 NBFCs

Meanwhile, RBI has canceled the Certificate of Registration (CoR) of 4 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.

5 NBFCs returned registration certificates

Meanwhile, 5 other NBFCs – Growing Opportunity Finance (India), Invel Commercial, Mohan Finance, Saraswati Properties and Quikr Marketing have returned their registration certificates.