Reserve Bank of India Action: Reserve Bank of India SG Finserv Ltd. A fine of Rs 28.30 lakh has been imposed. 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 non-compliance issues of financial institutions from time to time and also takes actions like penalties so that companies and banks remain under surveillance.
Reserve Bank imposes fine of Rs 28.30 lakh on SG Finserv
The RBI on Monday said that it had, among other things, revealed non-compliance of specific conditions related to the Certificate of Registration (CoR) in the financial details of the company 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 following the specific conditions in the COR issued.
Arunachal Pradesh Gramin Bank also fined Rs 14 lakh
The Reserve Bank has also imposed a fine of Rs 14 lakh on Arunachal Pradesh Gramin Bank. This penalty has been imposed on the bank for not following certain instructions on strengthening financial criteria and ‘Know Your Customer’ (KYC). This type of mistake happens in banks of small or rural areas but RBI is the regulator of banks and it keeps taking action from time to time.
RBI action against three other cooperative banks
Apart from this, penalty has been imposed on three other co-operative banks for violation of certain norms. These banks are District Co-operative Central Bank Limited-Bhind, Madhya Pradesh, The Urban Co-operative Bank Limited Dharangaon, Maharashtra and Shri Kalahasti Co-operative Town Bank Limited-Andhra Pradesh.
The Reserve Bank said the penalty is based on deficiencies in regulatory compliance. It is not the purpose of the RBI to adjudicate on the validity of any transaction or agreement entered into by these institutions with their customers.
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