The Reserve Bank of India (RBI) has imposed penalties on three entities, including the Housing and Urban Development Corporation, for not following certain regulations outlined in the Non-Banking Financial Company-Housing Finance Company Directive.
The RBI announced that the Housing and Urban Development Corporation Limited was fined ₹3.5 lakh for these violations.
In addition, the RBI imposed penalties of ₹5 lakh each on Godrej Housing and Aadhar Housing Finance Limited.
These fines were issued due to deficiencies in regulatory compliance. The RBI clarified that the penalties do not affect the validity of any transactions or agreements made by these companies.
Penalties on UCO Bank and Cent Bank Home Finance
Last week, the RBI also fined UCO Bank ₹2.68 crore for violations involving the opening of current accounts, interest rates on deposits, and fraud classification.
Additionally, a fine of ₹2.1 lakh was imposed on Cent Bank Home Finance Limited for non-compliance with ‘Know Your Customer’ (KYC) instructions.
The RBI stated that these penalties are solely for regulatory violations and do not question the validity of any transactions or agreements made with customers by these entities.
