Latest News | RBI Imposes Rs 15 Lakh Penalty on Fedbank Financial Services

Mumbai, Mar 22 (PTI) The Reserve Bank of India on Monday said it has imposed a penalty of Rs 15 lakh on Fedbank Financial Services Limited, Mumbai.

The penalty has been imposed for non-compliance with "certain provisions of the directions issued by the Reserve Bank of India (RBI) contained in 'Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016'," the central bank said in a statement.

RBI said the statutory inspection of the company with reference to its financial position as on March 31, 2019, revealed, inter alia, non-compliance with the directions issued by it.

A show-cause notice was issued to Fedbank Financial Services as to why a penalty should not be imposed for failure to comply with the directions issued by RBI.

"After considering the company's reply to the notice and oral submissions made during the personal hearing RBI came to the conclusion that the charge of non-compliance with aforesaid RBI directions was substantiated and warranted imposition of monetary penalty," RBI said.

It, however, added that the action against the company is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by Fedbank Financial Services with its customers.

Meanwhile, in an another statement, RBI said it has imposed a penalty of Rs 6 lakh on Koyana Sahakari Bank Limited.

The inspection report of the Koyana Sahakari Bank based on its financial position as on March 31, 2019, revealed that it had exceeded prudential inter-bank (single bank) exposure limit.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)