The Reserve Bank of India (RBI) has imposed penalties on three housing finance companies for violating specific provisions under the Non-Banking Financial Company (NBFC) – Housing Finance Company guidelines. These penalties highlight regulatory shortcomings but do not impact the validity of any transactions or agreements made by the companies.
Details of the Penalties:
- Housing and Urban Development Corporation Limited (HUDCO): A fine of ₹3.5 lakh was imposed for violations related to housing finance company regulations.
- Godrej Housing Finance: The company has been fined ₹5 lakh by the RBI for non-compliance with the NBFC-Housing Finance Company provisions.
- Aadhar Housing Finance Limited: Similarly, the RBI has levied a penalty of ₹5 lakh on Aadhar Housing Finance for regulatory lapses.
The RBI clarified in each case that the penalties were imposed due to regulatory compliance deficiencies, and they do not affect the legitimacy of any transactions or agreements entered into by the companies.
Recent Penalty on UCO Bank:
Last week, the RBI imposed a hefty fine of ₹2.68 crore on UCO Bank for breaching provisions related to the opening of current accounts, interest rates on deposits, and fraud classifications.
In addition, Cent Bank Home Finance Limited was fined ₹2.1 lakh for failing to comply with Know Your Customer (KYC) norms.
The central bank emphasized that these penalties are aimed at improving regulatory compliance and do not question the validity of any transactions with customers.
Summary of Penalties:
| Company | Penalty Amount | Reason |
|---|---|---|
| Housing and Urban Development Corp. | ₹3.5 lakh | Violation of NBFC-Housing Finance regulations |
| Godrej Housing Finance | ₹5 lakh | Non-compliance with regulatory provisions |
| Aadhar Housing Finance | ₹5 lakh | Regulatory lapses in housing finance |
| UCO Bank | ₹2.68 crore | Violations in current accounts, FD interest, and fraud classification |
| Cent Bank Home Finance Limited | ₹2.1 lakh | Non-compliance with KYC norms |
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