Finance Desk – The Reserve Bank of India (RBI) has recently taken action against India Home Loan Limited, a Mumbai-based company. Not only this, they have also take action against three cooperative banks for not follow regulatory guidelines.
India Home Loan Limited faced a penalty of Rs 1 lakh as they did not follow the rules set by the National Housing Bank (NHB). It has been claimed that the company had given out loans that exceeded the allowed Loan to Value (LTV) ratio. Despite being given a chance to explain its actions, the RBI decided to impose the penalty.
Moreover, RBI also penalized three cooperative banks for similar non-compliances. The Angul United Central Co-operative Bank Ltd in Odisha was fined Rs 1 lakh for not following Know Your Customer (KYC) norms. This decision came after an inspection by the National Bank for Agriculture and Rural Development (NABARD).
Also, penalties were imposed on The Prakasam District Co-operative Central Bank Ltd in Andhra Pradesh and Vishwakalyan Sahakara Bank Niyamit in Karnataka for not complying with various RBI rules.
The RBI has clarified that these penalties are focused on addressing the specific regulatory shortcomings and do not impact the legality of any transactions.
