reserve Bank of India
The Reserve Bank of India on Friday said it has imposed a penalty of Rs 31.8 lakh on BNP Paribas for certain deficiencies in statutory and regulatory compliance. The central bank has also imposed penalties on Hewlett Packard Financial Services (India), SMFG India Credit Company and Muthoot Vehicle & Asset Finance for non-compliance of certain of its norms. In a statement, the Reserve Bank said that Bank BNP Paribas has been fined for non-compliance of certain directions issued regarding ‘rate of interest on advances’.
What is the reason behind the action against BNP Paribas
The statutory inspection for supervisory assessment of the bank was done with reference to its financial position as of March 31, 2023. After that a show cause notice was issued to the bank. The Reserve Bank said that after considering the bank’s reply to the notice and the stand taken during the hearing, it found that the allegations against the bank were correct for which it was appropriate to impose a monetary penalty. The central bank said, “The bank failed to adopt a uniform external standard rate within the same loan category in respect of some loans.”
Hewlett Packard and Muthoot Vehicles were fined this much
Apart from this, the Reserve Bank has imposed a fine of Rs 10.40 lakh on Hewlett Packard Financial Services (India) Private Limited, Rs 7.9 lakh on Muthoot Vehicle and Asset Finance Limited and Rs 23.1 lakh on SMFG India Credit Company Limited (formerly Fullerton India Credit Company Limited). However, the Reserve Bank said that the fine is based on deficiencies in statutory and regulatory compliance and is not intended to decide on the validity of any transaction or agreement made by the entities with their customers.
Latest Business News
