RBI Action: Reserve Bank of India has become very strict. RBI first banned the business of one company on March 4 and now again announced ban on the business of another company on March 5.
RBI Action: Within 24 hours, the Reserve Bank of India took major action (RBI Action) against two companies and banned their business. Two central banks had already banned Paytm Payments Bank. Now see which two companies have been included in this list.
The Reserve Bank of India has become very strict. On March 5, RBI took major action against JM Financial Products, a non-banking finance company of JM Financial Group. The Reserve Bank has banned the company from giving loans against shares and debentures. This ban has been imposed with immediate effect.
RBI said that this action has been taken after finding some serious shortcomings in the functioning. During the investigation, some shortcomings were found regarding financing related to IPO and subscription of NCD i.e. Non-Convertible Debentures. It is learned that the company is repeatedly helping a section of its customers in bidding for IPOs and NCDs. Look ahead which other companies were banned.
RBI had banned IIFL FINANCE on March 4. The Central Bank has banned IIFL FINANCE from giving gold loan. This ban has been imposed on gold loan disbursement.
It is noteworthy that IIFL Finance can do business other than gold loan portfolio because the company’s gold loan portfolio has violated the rules. Supervisory irregularities have been found in this. Rules have been violated in loan-to-value ratio. There will be a special audit of the company’s functioning.
