The Reserve Bank of India (RBI) on Friday, October 13, said it has imposed monetary penalties on Bajaj Finance, RBL Bank, and Union Bank of India for non-compliance with its directions.
The RBI has imposed a penalty of Rs 8.50 lakh on Bajaj Finance, Rs 1 crore fine on Union Bank of India and Rs 64 lakh on RBL Bank, according to separate press releases by the central bank.
The penalty has been imposed on Union Bank of India as bank non-compiled with certain directions and sanctioned a term loan to a Corporation in lieu of or to substitute budgetary resources envisaged for certain projects, without undertaking due diligence on the viability and bankability of the projects to ensure that revenue streams from the projects were sufficient to take care of the debt servicing obligations, and the repayment/ servicing of which was made out of budgetary resources, according to the release.
RBL Bank has been fined for non-compliance with the RBI’s directions, to the extent it failed to (i) obtain annual declaration in Form B from one of its major shareholders, within one month of the close of the three financial years ending on March 31, 2018, March 31, 2019 and March 31, 2020, and (ii) furnish certificates to RBI regarding continuance of the ‘fit and proper’ status of one of its major shareholders, by the end of September of the said three financial years, the RBI said.
Bajaj Finance has been penalised for non-compliance with the RBI directions to the extent of not reporting and delay in reporting of certain frauds to RBI, the central bank said in the release.
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