The Reserve Bank of India (RBI) said on Thursday it had fined two entities. The lawsuit was suspected of lapse in compliance with regulations.
In a press release, RBI announced a penalty of Rs 3.1 lakh for JM Financial Products Limited.
JM Financial Products did not disclose material party transactions in its annual report, the central bank said.
“Our statutory inspection was conducted by the RBI in relation to its financial position as of March 31, 2023. A notice has been issued to the company to show reasons why no penalty is imposed on that point, based on the RBI’s direction and supervisory findings of non-compliance with related communications, based on the RBI’s direction and supervisory findings of non-compliance with related communications, and to show reasons why no penalty is imposed after it has been imposed because it cannot be penalized in that respect. The RBI discovers that in the submissions made at the individual hearing, the following charges against the company are maintained and guarantees the imposition of a financial penalty,” the RBI said.
Similarly, India Private Limited’s Experian Credit Information Company was fined 2 Rs for violations of certain provisions under the Credit Company (Regulations) Act of 2005 and for violations of the Credit Company Rules of 2006.
Read again: RBI will penalize 766,000 rupees on four entities
According to the RBI, Experian did not send any discrepancies regarding credit inconsistencies to the credit institution, nor did it tempt the borrower for not being able to modify the credit information by the seventh day of the receipt of the request or deleting it within 30 days of the request for correction.
“Our statutory inspections were conducted by the RBI in relation to its financial position as of March 31, 2023. Based on the supervisory findings of non-compliance with the provisions of the CIC(R) Act and the provisions of the CIC Rules, relevant communications have been issued in that respect.
The central bank has made it clear that penalties are collected due to regulatory shortcomings and do not affect the validity of transactions or contracts these companies have entered into with their customers.
Read again: RBI will penalize Citibank for violations of the norm
