Housing Development Financing Corporation Ltd (HDFC) was fined Rs 5 lakh by the Central Bank of India (RBI) on March 17 for breaking several regulations.
According to the RBI, a National Housing Bank assessment of the company revealed that it failed to transfer matured savings of some depositors to their allocated bank accounts throughout the 2019–20 timeframe.
The company was then sent a notice asking it to provide justification as to why a fine should not be levied against it for failing to follow the instructions, according to the RBI.
The RBI said it came to the view that the charge of non-compliance was proven and warranted imposition of a monetary penalty on the company after taking into account the company’s response to the notification.
The RBI stated that this action is based on regulatory compliance problems and is not meant to rule on the legality of any transaction or arrangement made by the company with its clients.
IGH Holdings Private Ltd, Mumbai, was fined Rs. 11.25 lakh by the RBI, according to a separate news statement. The company failed to transfer 20% of the net profit that was reported in its profit and loss account for the financial year 2020–21 to the Reserve Fund, according to the findings of the inspection of the company.
Additionally, despite being a member of the CIC, the company didn’t even provide the CIC with any credit information. A notice was then delivered to the company. The charge of non-compliance and penalty was levied, the RBI stated, after taking into account the company’s response.