RBI Penalty: RBI has imposed a penalty of Rs 2.5 crore on L&T Finance Ltd for not following certain rules related to Non-Banking Finance Company (NBFC).
RBI Penalty: The Reserve Bank of India (RBI) has imposed a penalty of Rs 2.5 crore on L&T Finance Ltd for not following certain rules related to Non-Banking Finance Company (NBFC). RBI said the report following the statutory inspection of the company revealed that the NBFC did not provide proper risk classification and justification for charging different interest rates to different categories of borrowers in the loan application form/sanction letter to its retail borrowers. Not disclosed.
The central bank said that NBFCs charged more interest than the penal interest rate specified at the time of loan sanction. It was penalized for failing to timely inform borrowers about changes in interest rates.
It said, after considering the company’s reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI came to the conclusion that the allegation of non-compliance was proved and the monetary penalty. It is necessary to apply.
