RBI Penalty on HDFC: The Reserve Bank of India (RBI) has put a fine of Rs 5,00,000 on Housing Development Finance Corporation Limited (HDFC) for not following certain provisions of the National Housing Bank (NHB). The RBI announced this on Friday, mentioning that NHB conducted an inspection of HDFC based on its financial position as of March 31, 2022.
During the inspection, it was discovered that HDFC didn't transfer the matured deposits of some depositors to their designated bank accounts during the 2019-20 period. Consequently, the company was issued a notice and asked why a penalty should not be imposed on it. After reviewing HDFC's response, the RBI determined that the allegations of non-compliance were true and imposed the penalty.
This isn't the first time that the RBI has fined a company for non-compliance. Earlier, the regulator levied a fine of over Rs 3 crore on Amazon Pay (India) Limited for not following the KYC rules and regulations for prepaid payment instruments.
These kinds of sanctions are used to force companies to abide with the rules and specifications set by regulatory organisations like RBI. To protect the financial system's integrity and safeguard stakeholders' interests, it is a must for companies to give compliance first priority.
Read more: Tax Saving Tips: What is Leave Travel Allowance and who can benefit from it to save on income tax?
