RBI Imposes Rs5 Lakh Penalty on Bajaj Housing Finance
Moneylife Digital Team 02 February 2024
The Reserve Bank of India (RBI) has imposed an Rs5 lakh penalty on Bajaj Housing Finance Ltd for non-compliance with certain provisions of the non-banking financial company (NBFC) - housing finance company (HFC) directions issued by the RBI. 
 
In a release, the banking regulator says Bajaj Housing Finance did not take prior written permission from RBI for a change in management, resulting in a change in more than 30% of the directors, excluding independent directors. This was revealed during a statutory inspection conducted by the National Housing Bank (NHB) concerning Bajaj Housing Finance's financial position as of 31 March 2022 and an examination of the inspection report (IR) and supervisory letter.  
 
"After considering the company's reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI came to the conclusion that the charge of non-compliance with the aforesaid statutory directions was substantiated and warranted imposition of monetary penalty on the company," it added.
 
According to RBI, its action against Bajaj Housing Finance 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 company with its customers.
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