The Reserve Bank of India (RBI) on Monday said it has slapped Rs 1-crore penalty on Bajaj Finance with respect to the violation of fair practices code. “The Reserve Bank of India (RBI) has imposed, by an order dated January 03, 2019, a monetary penalty of ₹ 10.0 million on Bajaj Finance Ltd. (the NBFC) for violation of Fair Practices Code…..This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 58G(1)(b) read with sub-section 5(aa) of section 58B of the RBI Act, 1934,” RBI said in a statement issued today.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the NBFC with its customers, RBI also said.
Bajaj Finance Limited, a subsidiary of Bajaj Finserv, is an Indian Non-Banking Financial Company (NBFC). The company deals in Consumer Finance, SME (Small and Medium-sized Enterprises) and Commercial Lending, and Wealth Management.
The shares of Bajaj Finance closed the day higher 36 points, or 1.43 per cent, at Rs 2,547 on BSE today.
Meanwhile, the BSE Sensex ended over 150 points lower today on heavy selloff by foreign investors after industrial output growth data dropped to a 17-month low. After a volatile session, the 30-share index settled 156.28 points, or 0.43 per cent, down at 35,853.56, while the broader NSE Nifty fell 57.35 points, or 0.53 per cent, to finish at 10,737.60