The Reserve Bank of India has imposed a penalty of Rs 1 crore on Bajaj Finance Limited for violation of Fair Practices Code of Master Direction. “The Reserve Bank of India (RBI) has imposed, by an order dated January 03, 2019, a monetary penalty of ₹ 10.0 million on Bajaj Finance Ltd. (the NBFC) for violation of Fair Practices Code…..This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 58G(1)(b) read with sub-section 5(aa) of section 58B of the RBI Act, 1934,” RBI said in a statement issued today.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the NBFC with its customers, RBI also said.
The Bajaj Finance Limited is an Indian Non-Banking Financial Company (NBFC) and also a subsidiary of Bajaj Finserv. The company deals in Consumer Finance, SME (Small and Medium-sized Enterprises) and Commercial Lending, and Wealth Management.
The shares of Bajaj Finance closed the day higher 36 points, or 1.43 per cent, at Rs 2,547 on BSE today.