RBI has imposed a fine of Rs 10.40 lakh on Hewlett Packard Financial Services (India) Private Limited, Rs 7.9 lakh on Muthoot Vehicle and Asset Finance Limited and Rs 23.1 lakh on SMFG India Credit Company Limited.
Reserve Bank of India on Friday said it has imposed a fine of Rs 31.8 lakh on BNP Paribas for certain deficiencies in statutory and regulatory compliance. The central bank has also imposed fines on Hewlett Packard Financial Services (India), SMFG India Credit Company and Muthoot Vehicle and Asset Finance for non-compliance with some of its norms. In a statement, the Reserve Bank said that Bank BNP Paribas has been fined for non-compliance of certain instructions issued regarding ‘interest rate on advances’.
What is the reason for action on BNP Paribas
The statutory inspection for supervisory assessment of the bank was done with reference to its financial position as on March 31, 2023. After that a show cause notice was issued to the bank. The Reserve Bank said that after considering the bank’s reply to the notice and the stand put forward during the hearing, it found that the allegations against the bank were correct for which it was appropriate to impose a monetary penalty. The central bank said, “The bank failed to adopt a uniform external benchmark rate within the same loan category in respect of certain loans.”
This much fine imposed on Hewlett Packard and Muthoot Vehicle
Apart from this, the Reserve Bank has imposed a fine of Rs 10.40 lakh on Hewlett Packard Financial Services (India) Private Limited, Rs 7.9 lakh on Muthoot Vehicle and Asset Finance Limited and Rs 23.1 lakh on SMFG India Credit Company Limited (formerly Fullerton India Credit Company Limited). However, the Reserve Bank said that the fine is based on deficiencies in statutory and regulatory compliance and is not intended to decide on the validity of any transaction or agreement made by the entities with their customers.
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