RBI fines Bajaj Finance for breaching regulatory compliance norms
Published On: Wednesday, January 6, 2021 | By: Team KnowMyStock
Shares of Bajaj Finance were 2 per cent down today after the Reserve Bank of India on Tuesday imposed a penalty of ₹2.5 crores for breaching regulatory compliance norms by an order dated January 05, 2021for violation of directions issued by RBI on Managing Risks and Code of Conduct in Outsourcing of Financial Services by NBFCs and Fair Practices Code (FPC) for applicable NBFCs, contained in the Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016; and a specific direction to the company to ensure full compliance with FPC in letter and spirit," the RBI said in a statement.“This penalty has been imposed in exercise of powers vested in RBI under the provisions of clause (b) of sub-section (1) of section 58 G read with clause (aa) of sub-section (5) of section 58B of the Reserve Bank of India Act, 1934, taking into account the failure of the company to ensure that its recovery agents did
did not resort to harassment or intimidation of customers as part of its debt collection efforts and thereby failing to adhere to the aforesaid directions issued by RBI," the regulator said.A notice was issued to the company by the RBI, advising it to show cause as to why penalty should not be imposed for such non-compliance.
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