RBI Penalizes Financial Institutions for Citing Violations

The Reserve Bank of India has imposed penalties on multiple financial institutions, including SG Finserve Limited and Arunachal Pradesh Rural Bank, for non-compliance with regulatory conditions regarding their Certificate of Registration and other prudential norms.

The Reserve Bank of India (RBI) has taken enforcement action against several financial institutions, handing out penalties for regulatory non-compliance. SG Finserve Limited, previously known as Moongipa Securities, has been fined Rs 28.30 lakh.

This penalty comes in light of the company's failure to adhere to specific conditions tied to its Certificate of Registration (CoR). Among the infractions, SG Finserve accepted public funds and granted loans against these conditions, according to RBI's statement.

Additionally, Arunachal Pradesh Rural Bank was fined Rs 14 lakh for failing to comply with norms on asset classification, provisioning, and KYC guidelines. Similar actions were taken against three cooperative banks for regulatory deficiencies. These penalties are directed at enhancing compliance and are independent of the legitimacy of transactions with customers.

(With inputs from agencies.)