RBI Penalizes Banks and Financial Firms for Non-Compliance

The Reserve Bank of India (RBI) has imposed various penalties on Bank of Maharashtra, Hinduja Leyland Finance Ltd, and Poonawalla Fincorp Ltd for non-compliance with its directions. The penalties include Rs 1.27 crore on BoM, Rs 4.90 lakh on HLFL, and Rs 10 lakh on PFL. The actions were based on regulatory deficiencies.

The Reserve Bank of India (RBI) announced on Friday that it has imposed significant monetary penalties on several financial institutions for regulatory non-compliance.

Bank of Maharashtra (BoM) faces a penalty of Rs 1.27 crore for violating directives related to loan delivery, cyber security, and Know Your Customer (KYC) guidelines. The decision followed a thorough examination of the bank's responses and submissions.

Hinduja Leyland Finance Ltd has been fined Rs 4.90 lakh for not adhering to KYC provisions, while Poonawalla Fincorp Ltd faces a Rs 10 lakh penalty for charging interest on loans before disbursement, contradicting terms communicated to customers. The RBI emphasized that these actions focus on regulatory lapses rather than the validity of individual transactions.