NEW DELHI: The central bank penalized four banking and finance enterprises on Friday following certain deficiencies in statutory and regulatory compliance.
The Reserve Bank fined BNP Paribas, Hewlett Packard Financial Services (India), SMFG India Credit Company, and Muthoot Vehicle & Asset Finance for non-compliance with certain norms.
In a press release, RBI said that BNP Paribas faces a Rs 31,80,000 fine for non-compliance with certain directions issued by RBI on ‘Interest Rate on Advances’.It said that a notice was issued to BNP Paribas, advising it to show cause as to why a penalty should not be imposed on it for its failure to comply with the said directions.After reviewing the bank’s response to the notice, its additional submissions, and the oral arguments presented during the personal hearing, the RBI-determined that one of the charges against the bank was upheld.
In separate releases, the RBI had also imposed a penalty of Rs 10.40 lakh on Hewlett Packard Financial Services (India) Private Limited, Rs 7.9 lakh on Muthoot Vehicle & Asset Finance Limited and Rs 23.1 lakh on SMFG India Credit Company Limited.
Hewlett Packard Financial Services Private Limited was penalized for non-compliance with multiple provisions of the directions issued by RBI. According to the release, the company failed to establish a system for the periodic review of account risk categorization, disclose and explicitly communicate the interest rates and to form an IT Strategy Committee and an IT Steering Committee to oversee and guide its information technology initiatives.
The Muthoot Vehicle & Asset Finance Limited had to face a penalty of Rs 7,90,000 for failing to disclose the information on Liquidity Coverage Ratio on its website, not submit data with respect to its gold loan customers to the four Credit Information Companies and not conveying in written the amount of loan sanctioned along with the terms and conditions.
RBI also imposed a penalty of Rs 23,10,000 SMFG India Credit Company Limited as it did not ensure that the contract between the company and its outsourced vendors contained the provision with respect to monitoring and oversight, failed to conduct IS Audit for Network and Security Solutions, also did not ensure enough storage of logs.
RBI, however, added in the press release that the penalties are based on deficiencies in statutory and regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers.
The Reserve Bank fined BNP Paribas, Hewlett Packard Financial Services (India), SMFG India Credit Company, and Muthoot Vehicle & Asset Finance for non-compliance with certain norms.
In a press release, RBI said that BNP Paribas faces a Rs 31,80,000 fine for non-compliance with certain directions issued by RBI on ‘Interest Rate on Advances’.It said that a notice was issued to BNP Paribas, advising it to show cause as to why a penalty should not be imposed on it for its failure to comply with the said directions.After reviewing the bank’s response to the notice, its additional submissions, and the oral arguments presented during the personal hearing, the RBI-determined that one of the charges against the bank was upheld.
In separate releases, the RBI had also imposed a penalty of Rs 10.40 lakh on Hewlett Packard Financial Services (India) Private Limited, Rs 7.9 lakh on Muthoot Vehicle & Asset Finance Limited and Rs 23.1 lakh on SMFG India Credit Company Limited.
Hewlett Packard Financial Services Private Limited was penalized for non-compliance with multiple provisions of the directions issued by RBI. According to the release, the company failed to establish a system for the periodic review of account risk categorization, disclose and explicitly communicate the interest rates and to form an IT Strategy Committee and an IT Steering Committee to oversee and guide its information technology initiatives.
The Muthoot Vehicle & Asset Finance Limited had to face a penalty of Rs 7,90,000 for failing to disclose the information on Liquidity Coverage Ratio on its website, not submit data with respect to its gold loan customers to the four Credit Information Companies and not conveying in written the amount of loan sanctioned along with the terms and conditions.
RBI also imposed a penalty of Rs 23,10,000 SMFG India Credit Company Limited as it did not ensure that the contract between the company and its outsourced vendors contained the provision with respect to monitoring and oversight, failed to conduct IS Audit for Network and Security Solutions, also did not ensure enough storage of logs.
RBI, however, added in the press release that the penalties are based on deficiencies in statutory and regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers.
