Reserve Bank of India Action : Reserve Bank of India has imposed a fine of Rs 28.30 lakh on SG Finserv Ltd. The company has been fined for not complying with certain conditions related to the registration certificate.
SG Finserv was earlier known as Mungipa Securities. RBI keeps an eye on the issues of non-compliance of financial institutions from time to time and also takes action like penalty to keep an eye on companies and banks.
Reserve Bank imposes Rs 28.30 lakh fine on SG Finserv
The RBI said on Monday that it had revealed non-compliance with the specific conditions related to the Certificate of Registration (COR) among other things in the company’s financial details for the financial year 2022-23.
The Reserve Bank said in a statement that the company has taken money from people as deposits and given loans despite not complying with the specific conditions in the COR issued.
Arunachal Pradesh Gramin BankĀ also fined Rs 14 lakh
The Reserve Bank has also imposed a fine of Rs 14 lakh on Arunachal Pradesh Gramin Bank. This fine has been imposed on the bank for not following certain instructions on strengthening financial criteria and ‘Know Your Customer’ (KYC). Such mistakes are made in small or rural banks but RBI is the regulator of banks and it keeps taking action from time to time.
RBI action taken on three other cooperative banks
Apart from this, three other cooperative banks have been fined for violating certain norms. These banks are District Cooperative Central Bank Limited-Bhind, Madhya Pradesh, The Urban Co-operative Bank Limited Dharangaon, Maharashtra and Sri Kalahasti Co-operative Town Bank Limited-Andhra Pradesh.
The Reserve Bank said that the fine is based on deficiencies in regulatory compliance. RBI does not intend to judge the validity of any transaction or agreement made by these entities with their customers.