RBI penalty on LIC Housing Finance

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The Reserve Bank of India (RBI) has imposed a penalty of Rs 5 lakh on the LIC Housing Finance Ltd, Mumbai, for non-compliance with certain provisions of The Housing Finance Companies (NHB) Directions, 2010.

This follows a statutory inspection of the company conducted by NHB with reference to financial position as on March 31, 2020. It followed the company’s failure to create floating charge in favour of its deposits and portion of the assets invested by it under Section 29B of the NHB Act, 1987.

The penalty has been imposed in exercise of powers vested in RBI under the provisions of clause (b) of sub-section (1) of section 52A read with clause (aa) of sub-section (3) of section 49 of the National Housing Bank Act, 1987 (NHB Act).