RBI Imposes Penalties on BNP Paribas and Others for Non-Compliance

The Reserve Bank of India has levied a penalty of Rs 31.8 lakh on BNP Paribas for deficiencies in regulatory compliance. Penalties were also imposed on Hewlett Packard Financial Services, SMFG India Credit Company, and Muthoot Vehicle & Asset Finance. These penalties address non-compliance with RBI norms related to 'Interest Rate on Advances'.

The Reserve Bank of India has imposed a penalty of Rs 31.8 lakh on BNP Paribas for failing to comply with statutory and regulatory norms.

Additionally, penalties were imposed on Hewlett Packard Financial Services (India), SMFG India Credit Company, and Muthoot Vehicle & Asset Finance for similar non-compliance with RBI directives.

The RBI's inspection revealed BNP Paribas did not adopt a uniform external benchmark for certain loans, leading to the penalty. The central bank emphasized that these penalties reflect deficiencies in compliance rather than the validity of customer transactions.

(With inputs from agencies.)