Cancelling the registration certificate, RBI said that as of March 31, 2021, the company failed to maintain the minimum regulatory net owned fund of Rs 5 crore and minimum capital adequacy ratio (CAR) of 15 percent prescribed for NBFC-MFIs. Let us tell you that as of March 31, 2021, Margdarshak Financial Services Limited was facing cash flow issues and was defaulting on repayment of Rs 49.27 crore to its lenders.

Difficulty in keeping business going

According to the Central Reserve Bank, the auditor found that there is uncertainty due to the loss (Rs 187 crore) and high net NPA (Rs 82.37 crore), which casts doubt on the company’s ability to continue its business. Apart from this, there was a delay in finalizing the company’s accounts for the financial year 2020-21. It was finalized on October 22, 2021, after about seven months.

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RBI action on these 2 companies

Meanwhile, the Reserve Bank has imposed fines on NDX P2P Private Limited and Innofin Solutions Private Limited for non-compliance with certain provisions of ‘peer-to-peer lending platform’ and guidelines on digital lending. Innofin has been fined Rs 1.99 crore. NDX P2P Private Limited has been fined Rs 1.92 crore.

RBI action

Let us tell you that RBI is very strict about the rules. In this connection, RBI recently imposed fines on five units including CSB Bank, Union Bank of India and Muthoot Housing Finance. This fine has been imposed due to violation of different regulatory norms. RBI said that in every case the fine is based on deficiencies in regulatory compliance and is not related to the financial transactions of these units.

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The post RBI’s big action! RBI cancelled the registration certificate of this company first appeared on Rightsofemployees.com.

Whenever a bank ignores RBI rules and does its own thing, the central bank can impose a fine on it. In this series, RBI has imposed penalty on Punjab National Bank (PNB), Federal Bank, Mercedes Benz Financial Services India Private Limited and Kosamattam Finance Limited, Kottayam. This action has been taken due to non-compliance of rules.

RBI said on Friday that it has imposed a penalty of Rs 72 lakh on PNB and Rs 30 lakh on Federal Bank. The central bank has imposed a fine of Rs 10 lakh on Mercedes Benz Financial Services India Pvt Ltd (formerly known as Daimler Financial Services India Pvt Ltd) for non-compliance with certain provisions of its Know Your Customer (KYC) Directive, 2016. Fine has also been imposed.

STORY | RBI imposes penalty on PNB, Federal Bank, 2 other entities

READ: https://t.co/hLrloaPJEj

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— Press Trust of India (@PTI_News) November 3, 2023

RBI also said that Kosamattam Finance Limited, Kottayam has been fined for non-compliance with certain provisions of the ‘Non-Banking Financial Companies – Systemically Important Non-Deposit Taking Companies and Deposit Taking Companies (Reserve Bank) Directions, 2016’. A fine of Rs 13.38 lakh has been imposed.

The post RBI’s big action! RBI imposed fine on PNB and Federal Bank, What will be the impact on customers? first appeared on Rightsofemployees.com.

If you also have an account in any bank, then this is important news for you. The Reserve Bank of India (RBI) imposed a penalty of Rs 2.20 crore on public sector Indian Overseas Bank (IOB) for non-compliance with rules related to income recognition and other deficiencies in regulatory compliance.

violated the rules

This fine has been imposed for violation of the provisions of certain instructions of RBI. These include ‘Prudential Norms on Income Recognition, Asset Classification and Provisions relating to Advances etc. The RBI said the action is based on deficiencies in regulatory compliance and is not concerned with the validity of any transaction or agreement entered into by the bank with its customers.

The central bank informed

that the statutory inspection (ISE 2021) for the supervisory assessment of the bank was done by the RBI on March 31, 2021 with reference to its financial position. The Chennai-based bank failed to make the minimum mandatory transfer of an amount equal to 25 per cent of the declared profit for the year 2020-21 to its reserve fund.

Central Bank was fined last week

Earlier, RBI had also imposed heavy fine on Central Bank. The Reserve Bank of India said it had imposed a penalty of Rs 84.50 lakh on public sector Central Bank of India (CBI) for non-compliance with certain provisions of norms relating to fraud classification and reporting.

Why was the penalty imposed?

The Reserve Bank had conducted a statutory inspection for supervisory assessment of the bank’s financial position as on March 31, 2021. Scrutiny of the report revealed that the bank did not report the fraud to the RBI within seven days of the decision to declare the accounts of the Joint Forum of Lenders (JFL) as frauds. The bank charged its customers for SMS Alerts on a flat basis instead of actual usage basis.

The post RBi’s big action..! Now RBI imposed a penalty of Rs 2.20 crore on this bank, check details first appeared on Rightsofemployees.com.