Reserve Bank of India imposes monetary penalty on Bajaj Finance Ltd. and various banks

Last updated: 06 January 2021

Save Share

Quick Summary

The Reserve Bank of India (RBI) has levied significant monetary penalties on Bajaj Finance Ltd. and two cooperative banks for various regulatory non-compliance issues. Bajaj Finance received a ₹2.50 crore fine for failing to ensure its recovery agents did not harass customers and for repeated complaints regarding debt collection methods. Maharashtra Nagari Sahakari Bank Maryadit and Vyavasayik Sahakari Bank Maryadit were fined ₹2.00 lakh and ₹5.00 lakh respectively for breaches related to Know Your Customer (KYC) norms and ATM opening procedures.

Reserve Bank of India imposes monetary penalty on Bajaj Finance Limited The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹2.50 crore (Rupees Two crore Fifty lakh only) on Bajaj Finance Limited, Pune (the company), by an order dated January 05, 2021, for violation of (i) directions issued by RBI on Managing Risks and Code of Conduct in Outsourcing of Financial Services by NBFCs and Fair Practices Code (FPC) for applicable NBFCs, contained in the Non-Banking Financial Company -

Daily Limit Reached

You have reached your daily limit of 2 Free News

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?

No Ads
WhatsApp Community
Daily E-Newsletter
Unlimited News Access
Profile Visitors
Link Social Profiles
Featured Job Posts
Pro Badge
Expert GST Guidance
Unlimited Forum Replies
Download Content in PDF

1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

View all CCI PRO benefits

Already a PRO member? Login here for an ad-free experience. 07941056694

FAQ :

Bajaj Finance Ltd. was fined ₹2.50 crore by the RBI for violating directions on managing risks in outsourcing financial services and for failing to ensure its recovery agents did not resort to harassment or intimidation of customers.

Maharashtra Nagari Sahakari Bank Maryadit was fined ₹2.00 lakh for non-compliance with RBI directions on Know Your Customer (KYC) norms.

Vyavasayik Sahakari Bank Maryadit was fined ₹5.00 lakh for non-compliance with RBI directions concerning the opening of On-site ATMs and Know Your Customer (KYC) procedures.

The penalties are imposed based on deficiencies in regulatory compliance identified during inspections and are not intended to question the validity of any transactions or agreements made by the entities with their customers.

The orders for the penalties were dated January 5, 2021, for Bajaj Finance Ltd., and January 4, 2021, for Maharashtra Nagari Sahakari Bank Maryadit and Vyavasayik Sahakari Bank Maryadit.

2307 Views Comment Share Community & General Report

News posted by

CCI News Desk

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

View News

Comments :