RBI Toughens Action
Against Citibank, JM Financial & Aashirwad Micro Finance
RBI is very strict against the leading financial institutions for violating the regulatory guidelines. Citibank, JM Financial Home Loans Limited, and Aashirwad Micro Finance have been penalized to an awful extent for noncompliance in delivering a very strong message around the banking sector.
Citibank Fined ₹39 Lakhs, Reasons for this – RBI Toughens Action
Regulatory Breach and Lag in Reporting
RBI slapped Citibank with a penalty of ₹39 lakh for non-adherence to rules related to large corporate loans and not reporting vital financial information to credit information companies within the stipulated time.
What Did RBI’s Investigation Unveil?
Citibank delayed reporting of large loan violations. It could not submit the revised data within 7 days after receiving rejection notices from credit bureaus.
Last Show-Cause Notice and Penalty
The last show-cause notice to Citibank has been issued by RBI. Subsequently assessment of the reply and oral submissions, RBI found the bank in non-compliance and levied a fine.
JM Financial Home Loans Penalized by ₹1.50 Lakh Major Violations-RBI Toughens Action
Not Adhering to the Housing Finance Regulations
JM Financial Home Loans Limited is owing to a lack of compliance with Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021.
The Decision of RBI
As such, RBI sanctioned a penalty of ₹1.50 lakh against JM Financial for having committed these offenses.
Aashirwad Micro Finance Penalized Rupees 6.20 Lakhs: Serious Lapses Detected!
Inability to Furnish Gold Loan Fact Sheet
It was penalized for not issuing mandatory fact sheets to specific gold loan customers.
Weak Grievance Redressal System
The company lacks a proper escalation of complaints rejected through internal grievance mechanisms.
RBI Verdict: Aashirwad Micro Finance makes a payment of ₹6.20 lakh for non-execution.
RBI’s Stern Message-Follow the Rules or Pay the Price!
The new penalties shall place a focus on the strict enforcement power of RBI. Compliance is also necessary by institutions on the new conditions. They are:
- Report financial data promptly.
- Be diligent with large loan loaning guidelines.
3 Establish robust customer grievance avenues for addressing problems.
Get Updated on RBI’s Very Latest Banking Regulations!
RBI is tightening its control on banking compliance, but it is up to financial institutions to be highly aware and follow the rules to keep from incurring high penalties.
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