06 April 2024 – The Reserve Bank of India (RBI) revoked the registration certificates of four non-banking financial organizations on Friday.
These organizations are called Bhatia Hire Purchase Pvt Ltd in Punjab, Jiwanjyoti Deposits and Advances Limited in Himachal Pradesh, Nithya Finance Limited in Tamil Nadu, and Kundles Motor Finance Private Limited in Uttar Pradesh.
As per the RBI Act, these companies will no longer be permitted to conduct business as Non-Banking Financial Institutions. In other developments, IDFC First Bank Limited (the bank) was fined Rs 1 crore by the Reserve Bank of India (RBI) today for failing to follow certain guidelines on “Loans and Advances – Statutory and Other Restrictions” that the central bank had issued.
Conclusion
An RBI statement claims that this fine was assessed because the RBI used its authority granted by the 1949 Banking Regulation Act. Based on supervisory findings of non-compliance with RBI directions / statutory provisions and accompanying correspondence in that regard, the RBI sent the bank a notice requesting it to justify why it shouldn’t be penalized for not following the instructions mentioned above.
