Bank of Maharashtra, Poonawalla Fincorp among 3 companies slapped with RBI penalties
The Reserve Bank of India (RBI) has imposed monetary penalties on three companies: Bank of Maharashtra, Hinduja Leyland Finance, and Poonawalla Fincorp.
![Bank of Maharashtra, Poonawalla Fincorp among 3 companies slapped with RBI penalties](https://cdn.zeebiz.com/sites/default/files/2024/08/16/312438-rupeepexels.jpg?im=FitAndFill=(1200,900))
The Reserve Bank of India (RBI) has imposed monetary penalties on three companies, including PSU lender Bank of Maharashtra, for non-compliance with certain norms. The banking regulator has imposed a fine of Rs 1,27,20,000 on the state-run bank, and penalties of Rs 10 lakh and Rs 4.9 lakh on non-banking financial companies (NBFCs) Poonawalla Fincorp and Hinduja Leyland, respectively.
Penalty on Bank of Maharashtra
The RBI cited "non-compliance with certain directions issued by RBI on ‘Loan System for Delivery of Bank Credit’, ‘Cyber Security Framework in Banks’ and ‘Know Your Customer’" for the imposition of the fine on the state-run lender. Read more
Penalty on Poonawalla Fincorp
In the case of Poonawalla Fincorp, the RBI mentioned "non-compliance with certain provisions of its directions on systematically important non-deposit-taking and deposit-taking companies relating to its Fair Practices Code for NBFCs'" behind its action to impose a monetary penalty. Read more
Penalty on Hinduja Leyland Finance
It cited "non-compliance with certain provisions of the Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016" in the case of Hinduja Leyland Finance. Read more
In all three cases, the RBI sent separate notices to the companies and took actions based on "findings of non-compliance" with its directions and related correspondence after conducting certain inspections.
The RBI exercised its power under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949, in the case of Bank of Maharashtra, and under the provisions of Clause (b) of Sub-Section (1) of Section 58 G read with Clause (aa) of Sub-Section (5) of Section 58 B of the RBI Act, 1934, in the cases of Poonawalla Fincorp and Hinduja Leyland Finance.
The RBI said the imposition of the penalties is "without prejudice to any other action that may be initiated by the RBI against the company".
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