RBI imposes penalty of Rs 1 crore on IDFC First Bank for violation of norms

The Reserve Bank on Friday said it has imposed a penalty of Rs 1 crore on IDFC First Bank and Rs 49.70 lakh on LIC Housing Finance for violation of certain norms.

The penalty on IDFC First Bank has been imposed for non-compliance with certain directions on Loans and Advances Statutory and Other Restrictions', the central bank said in a statement.

In another statement, it said the penalty on LIC Housing Finance has been levied for non-compliance with certain provisions of the Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021' issued by RBI.

In both cases, penalties are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by them with their respective customers.

Meanwhile, the RBI has cancelled certificate of registration (CoR) of four NBFCs -- Kundles Motor Finance, Nithya Finance, Bhatia Hire Purchase, and Jiwanjyoti Deposits and Advances.

The four companies now cannot transact the business of a non-banking financial institution.

Another five NBFCs have surrendered their CoR. These are -- Growing Opportunity Finance (India), Invel Commercial, Mohan Finance, Saraswati Properties, and Quicker Marketing.