RBI slaps Rs 5 lakh fine on Bajaj Housing Finance for violating provisions

The Reserve Bank of India (RBI) on Friday imposed a monetary penalty of Rs 5 lakh on Bajaj Housing Finance for changing management, which resulted in a change of directors in the company without seeking prior written permission from the regulator.

The action is taken on the basis of an assessment conducted by the National Housing Bank for a time period ending on March 31, 2022.

“The company did not take prior written permission of the RBI for change in management resulting in a change in more than 30 per cent of the directors, excluding independent directors,” as per the press release by the RBI.

The action stands in violation of certain provisions of the ‘Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021’ issued by the RBI. The banking regulator, by an order dated January 29, 2024, imposed a monetary penalty of Rs 5 lakh on the company.