The Reserve Bank of India (RBI) imposed a monetary penalty of Rs 2.50 crore on Bajaj Finance for violation of regulatory norms, the central bank said in a release on Tuesday. The lapses were linked to risk management and a specific fair practice code.
“A notice was issued to the company advising it to show cause as to why penalty should not be imposed for such non-compliance,” RBI said in a release.
After considering the company’s reply to the notice, oral submissions made during the personal hearing and examination of additional submissions made by it, RBI concluded that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty.
Bajaj Finance shares were down 1.83 percent to close at Rs 5121 apiece Tuesday.
“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 company with its customers,” RBI said.
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