RBI imposes Rs. 15-lakh fine on Fedbank Financial Services Ltd

RBI has recently imposed a monetary penalty of Rs. 15 lakh on Fedbank Financial Services Ltd (Fedfina), Mumbai for non-compliance with “certain provisions of the directions issued by the Reserve Bank of India (RBI) contained in Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016,” RBI said in a statement.

“After considering the company’s reply to the notice and oral submissions made during the personal hearing, RBI came to the conclusion that the charge of non-compliance with aforesaid RBI directions was substantiated and warranted imposition of monetary penalty”, stated RBI.

RBI also added that action against the company is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by Fedbank Financial Services with its customers.