RBI fines Shriram Fin, Nainital Bank and Ujjivan

By

, ET BureauLast Updated: Feb 14, 2025, 08:17:00 PM IST

Synopsis

The Reserve Bank of India fined Shriram Finance, Nainital Bank, and Ujjivan Small Finance Bank for not adhering to regulatory guidelines. Nainital Bank was fined Rs 61.40 lakh for issues with interest rates and customer service, Ujjivan received a Rs 6.70 lakh fine for not issuing loan agreements, and Shriram Finance was penalized Rs 5.

Kolkata: The Reserve Bank of India has levied penalties on Shriram Finance, Nainital Bank and Ujjivan Small Finance Bank for failing to adhere to certain regulatory guidelines.

The central bank fined Rs 61.40 lakh on Nainital Bank for non-compliance with directions on interest rate on advances and customer service. The private sector bank did not benchmark certain floating rate loans extended to MSMEs to an external benchmark rate and levied penal charges for non-maintenance of minimum balance in savings bank accounts at flat rates instead of the charges being directly proportionate to the extent of shortfall.

The fine on Ujjivan was Rs 6.70 lakh as it failed to issue loan agreements to certain borrowers at the time of sanction / disbursement of loans.

Shriram Finance was slapped with a Rs 5.80 lakh fine for failing to put in place a system of periodic review of risk categorisation of accounts among other issues.

These actions are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, the central bank said.

"Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank," the regulator said.

...moreless

...moreless