Reserve Bank of India (RBI) has imposed penalties of Rs94.80 lakh on Equitas Small Finance Bank Ltd, India Post Payments Bank Ltd and Aptus Finance India Pvt Ltd, a non-banking financial company (NBFC), for non-compliance with the directions issued by the banking regulator. The highest penalty of Rs65 lakh has been imposed on Equitas Small Finance Bank.
Equitas Small Finance Bank has been penalised for non-compliance with directions issued by RBI on the levy of foreclosure charges or pre-payment penalty on floating rate term loans and credit flow to agriculture - collateral-free agricultural loans.
RBI's statutory inspection revealed that Equitas Small Finance Bank levied foreclosure charges on some floating rate term loans sanctioned to individual borrowers for purposes other than business and obtained collateral security for certain agricultural loans worth Rs1.6 lakh.
India Post Payments Bank was fined Rs26.70 lakh for non-compliance with directions issued by RBI on customer services in banks. The lender upgraded some savings bank accounts without obtaining customer consent in writing or through any other mode and also levied annual charges after the upgrade of those accounts.
Aptus Finance India was fined Rs3.10 lakh for failing to comply with provisions of the NBFC - systemically important non-deposit-taking company and deposit-taking company directions issued by RBI. The company did not seek prior written permission from RBI before making changes in its management, which led to a change in more than 30% of its directors, excluding independent directors.
In all three cases, RBI said penalties are based on deficiencies in regulatory compliance and are not intended to pronounce on the validity of any transaction or agreement they entered into with their customers.
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