RBI imposes penalty on IDFC First Bank, LIC HFC

Reserve Bank of India has imposed monetary penalty of Rs 1 crore on private sector lender IDFC First Bank for non-compliance with certain directions issued by regulator on Loans and Advances.

The bank had sanctioned term loans to a public sector undertaking for infrastructure projects without due diligence on the viability and bankability of the projects to ensure revenue streams from the projects were sufficient for repaying debt.

The repayment / servicing of the said term loans was made out of budgetary resources, RBI said in a statement. In Another regulatory action, RBI imposed a monetary penalty of Rs 49.70 lakh on LIC Housing Finance Ltd for non-compliance with certain provisions of Fair Practices Code.