RBI Imposes Penalties on Financial Giants for Compliance Lapses

The Reserve Bank of India levied fines on JM Financial Products and Experian Credit Information Company for failing to comply with specific regulatory standards. JM Financial faced a Rs 3.1 lakh penalty over non-banking financial guidelines, while Experian received a Rs 2 lakh fine for breaching credit information regulations.

In a decisive move, the Reserve Bank of India (RBI) has enforced monetary penalties on JM Financial Products Limited and Experian Credit Information Company of India Private Limited for regulatory non-compliance.

On Thursday, RBI announced that JM Financial has been fined Rs 3.1 lakh for violating directives pertinent to non-banking financial companies, particularly those that are systemically important yet non-deposit taking or deposit-taking.

Similarly, Experian has been issued a Rs 2 lakh penalty for contravention of the Credit Information Companies (Regulation) Act and associated rules. The central bank noted these sanctions address compliance defects without challenging the legality of the companies' client agreements.

(With inputs from agencies.)