New Delhi [India], Apr. 11 (ANI): The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 20 lakh on M/s Shriram City Union Finance Ltd.
The company faced fine under Section 58G(1)(b) read with sub-section 5(aa) of Section 58B of the RBI Act, 1934, for violation of directions or orders issued by the Reserve Bank of India from time to time.
A scrutiny of sample loan accounts of the company was conducted under Section 45N of the Reserve Bank of India Act, 1934 (the RBI Act, 1934) during November 2015.
It was observed that the company has violated various provisions of the Fair Practices Code guidelines issued by the Bank under Section 45 L of the RBI Act, 1934.
On account of various contraventions to RBI Directions as observed during the scrutiny, the company was issued a showcause notice on August 1, 2016, for imposition of penalty. The company's response to the showcause notice was not found to be satisfactory.
The company was also accorded a personal hearing by the RBI under Section 58G (2) of the RBI Act, 1934, on February 14.
After considering the facts of the case and the company's reply, as also, personal submissions made during the hearing, the RBI came to the conclusion that the violations as observed during scrutiny were substantiated which warranted imposition of monetary penalty on the company. Accordingly, a penalty of Rs. 20 lakh has been imposed on the company. (ANI)