RBI imposes monetary penalty on HDFC Bank, Shriram Finance

Posted on by Vividh Bharathi

Mumbai, July 11 (IANS) The Reserve Bank of India (RBI) said on Friday that it has imposed a monetary penalty of Rs 4.88 lakh on HDFC Bank and Rs 2.70 lakh on Shriram Finance after finding non-compliance with certain directions of the Central Bank.

The penalty on HDFC Bank was levied under the provisions of Section 11(3) of the Foreign Exchange Management Act (FEMA) after the private sector lender had ignored the ‘Master Direction – Foreign Investment in India’ while granting a term loan to its client, the Reserve Bank said in a statement.

“The RBI had issued a Show Cause Notice to the bank for the same, and in response to which HDFC Bank had submitted a written reply and had also made oral submissions thereon,” the statement read.

After considering the facts of the case and the response given by HDFC Bank in the matter, the RB concluded to impose a penalty.

Similarly, the Reserve Bank laid a financial penalty on Shriram Finance Limited, a non-banking finance corporation (NBFC), for non-compliance with certain provisions of digital lending.

“The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2.70 lakh on Shriram Finance Limited for non-compliance with certain provisions of the “Reserve Bank of India (Digital Lending) Directions, 2025” issued by RBI,” the central bank stated.

The RBI had conducted a statutory inspection of the company concerning Shriram Finance’s financial position as on March 31, 2024.

“Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the company advising it to show cause as to why a penalty should not be imposed on it for its failure to comply with the said directions,” the bank said.

The company routed the loan repayments through the account of a third party, instead of the borrowers directly crediting the loan repayments to the company’s account, the RBI found in its inspection.

The Reserve Bank said it has imposed a penalty on Shriram Finance by issuing an order on July 08, 2025.

–IANS

aps/na/dan

Related Posts

BRS demands judicial probe into SLBC tunnel collapse

Hyderabad, Feb 25 (IANS) Telangana’s main opposition Bharat Rashtra Samithi (BRS) on Tuesday demanded a judicial probe into the Srisailam Left Bank Canal (SLBC) tunnel accident.

BRS Working President K.T. Rama Rao demanded the immediate constitution of a judicial commission led by a sitting High Court judge to investigate the collapse of the tunnel.

Alleging gross negligence by the Congress government, he held Chief Minister A. Revanth Reddy responsible for prioritising election campaigns over relief efforts.

KTR, as the former minister is popularly known, criticised the state government for allowing the tunnel construction without necessary approvals from Geological Survey of India (GSI) experts, describing it as a “shocking display of incompetence and inexperience”.

He questioned the Chief Minister’s absence from relief operations while eight workers remained trapped. “Is there no time for the CM to ensure the rescue of these workers while he flies around in helicopters for campaigns?”

The BRS leader was referring to the three public meetings addressed by the Chief Minister as part of the Congress party’s campaign for MLC elections.

Highlighting a pattern of mishaps under the Congress regime, KTR recalled three major accidents in the past 14 months. He cited the complete washout of the Peddavagu project in Khammam and the collapse of the Sunkishala project’s retaining wall – meant to supply drinking water to Hyderabad – causing losses worth hundreds of crores.

Referring to the SLBC tunnel collapse, where workers have remained trapped for over 72 hours, KTR expressed deep concern over the slow pace of rescue operations. He accused the government of recklessness, stating that restarting the tunnel project without technical studies or GSI approval directly endangered lives and public money. “If you didn’t do any technical study before restarting the project and carelessly put lives and public funds at risk, you have no one to blame but yourselves,” he said.

Lashing out at ministers Uttam Kumar Reddy and Komatireddy Venkat Reddy, KTR remarked that while one was “shamelessly singing praises of their work”, the other remained “clueless” despite the crisis. “After four days of work at SLBC, all they have to show is eight missing workers, debris, slush, and a Rs 300 crore damage to machinery. It is appalling that they feel proud of such a failure,” he added.

Demanding a comprehensive judicial inquiry, KTR urged the Congress government to reveal the truth behind the SLBC accident and the Sunkishala wall collapse. He called for swift action involving Central government agencies and the Army to expedite rescue efforts.

–IANS

ms/vd

One more arrested in connection with fake passport racket in Bengal, total rises to 6

Kolkata, Dec 25 (IANS) The West Bengal Police on Wednesday arrested one more person in connection with the racket of arranging fake Indian passports for Bangladeshi infiltrators entering Indian territory through the state’s porous borders, both land and coastal.

The arrested person, identified as Mokhtar Alam, was arrested from his residence at Duttapukur in North 24 Parganas district.

Several incriminating documents, including fake PAN cards and bank ATM cards, have been seized from his possession.

With Alam’s arrest, the total number of arrests in connection with the fake passport rackets from different pockets in the state during the last 10 days has increased to six.

A senior official of the state police said that the investigating officials got information about Alam’s involvement in the racket by interrogating the five arrested earlier in connection with the fake passport racket scam.

Alam had prior criminal antecedents and he had been arrested a number of times in the past because of his involvement in illegal and anti-social activities. The investigating officials expect to secure information about others involved in the racket by interrogating him.

They have identified a pattern in the operations of such rackets engaged in arranging fake Indian passports for the Bangladeshi infiltrators. Any infiltrator illegally crossing over to the Indian territory, contacting the local agents and showing willingness to pay out hefty amounts for getting fake Indian identity documents are first provided with safe shelters at different villages adjacent to the borders with Bangladesh in the state.

Thereafter, the agents first arrange for fake ration cards for them which is the first step for making other identity documents. By virtue of these, other identification documents like EPIC, PAN, and Aadhaar cards are arranged. The last step is getting the fake passports on the basis of the other fake identity documents.

–IANS

src/vd

Vijender Gupta elected Delhi Assembly Speaker; Oppn forces adjournment

New Delhi, Feb 24 (IANS) Vijender Gupta, BJP legislator from Rohini, was elected the Speaker of Delhi Assembly on Monday after his name was proposed by Chief Minister Rekha Gupta. Soon after his election, the proceedings of the House were adjourned due to disruptions by the Opposition legislators of the AAP.

During the House proceedings, conducted by pro-tem Speaker Arvinder Singh Lovely, Gupta was elected as the new Speaker with unanimity.

Soon after assuming the new role, Speaker Gupta faced the challenge of slogan shouting by the AAP legislators during the discussion on vote of thanks for the election of new the Speaker.

In his opening remark, he condemned the Leader of Opposition Atishi for trying to raise an issue without permission and disturb the proceedings.

“I want to warn the Opposition that they should not try to spread anarchy. They should let the proceedings to continue smoothly,” he said, expressing his displeasure over the behaviour of AAP legislators.

Earlier, while greeting Speaker Gupta on his election Atishi said photos of B.R. Ambedkar and Shaheed Bhagat Singh had allegedly been removed from the Chief Minister’s Office.

Her remarks, without the permission of the Chair, triggered noisy protests from the Treasury Benches with the Speaker censuring the LoP for speaking out of turn and context. When the AAP legislators continued to disrupt the proceedings, the Speaker adjourned the House proceedings.

Earlier, CM Gupta along with her Council of Ministers took oath as members of the Legislative Assembly. The first session of the House commenced on Monday morning and saw all newly-elected legislators taking oath.

There are 48 BJP legislators and 22 AAP legislators in the 70-member Assembly.

Along with Delhi CM, the BJP ministers namely Parvesh Verma, Ashish Sood, Kapil Mishra, Ravinder Singh Indraj, Pankaj Kumar Singh and Manjinder Singh Sirsa also took the oath.

AAP’s MLAs, including Leader of Opposition in the Assembly, Atishi, also took oath during the first session of the House.

With her appointment, Rekha Gupta has become the fourth woman Chief Minister of Delhi, following in the footsteps of Sheila Dikshit, Sushma Swaraj, and Atishi.

She is also the fourth BJP leader to hold the top post in the national Capital, succeeding Madan Lal Khurana, Sahib Singh Verma, and Sushma Swaraj.

The first session of the Delhi Assembly is set to last for three days.

The proceedings began with BJP MLA Lovely taking oath as the pro-tem Speaker, a temporary position responsible for conducting House proceedings until a full-time Speaker is elected. Lieutenant Governor VK Saxena administered the oath to Lovely at Raj Niwas.

–IANS

rch/rad