RBI fines Rs 10 lakh penalty on NABFINS in response to non-compliance

According to the RBI, this has to do with the deposit taking company guidelines of 2016 and the non-banking financial company’s systemically important non-deposit taking firm’s non-compliance regulations.

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NABFINS Limited, a NABARD subsidiary, was fined Rs 10 lakh by the Reserve Bank of India (RBI) on April 15 for breaking many regulations.

According to the RBI, this has to do with the deposit taking company guidelines of 2016 and the non-banking financial company’s systemically important non-deposit taking firm’s non-compliance regulations.

RBI carried out the company’s statutory examination, reviewing its financial standing as of March 31, 2022.

The RBI stated that a notice was sent to the company instructing it to provide justification for why a penalty should not be levied on it for its failure to comply with regulations, based on supervisory findings of non-compliance with RBI directions and relevant correspondence in that regard.

It stated that this action is based on the regulatory compliance shortcomings and is not meant to rule on the legality of any transaction or arrangement the company may have entered into with its clients.

Furthermore, the imposition of this financial penalty does not preclude the RBI from taking further measures against the company in the future.

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