RBI: RBI took action, 4 companies including BNP Paribas were caught, heavy fines were imposed

BNP Paribas Bank: The Reserve Bank of India (RBI) has taken action against 4 companies including BNP Paribas on different charges. RBI has imposed a fine of Rs 31.8 lakh on BNP Paribas Bank. Apart from this, Hewlett Packard Financial Services, India, SMFG India Credit Company and Muthoot Vehicle & Asset Finance have also come under the purview of RBI’s action. All of them were accused of violating several RBI guidelines.

Rules regarding interest rates on advances were not followed

RBI said on Friday that BNP Paribas Bank was not properly following the rules related to interest rates on advances. Due to this, action has been taken against it. The central bank had inspected the financial report till March 31, 2023 in this regard. This action has been taken to impose a fine after deficiencies were found in the investigation. A show cause notice was issued to BNP Paribas Bank in this regard. After hearing the bank’s side, their fault was found. Due to this this decision was taken.

Lakhs of rupees fine imposed on all three companies

Apart from this, RBI has imposed a fine of Rs 10.40 lakh on Hewlett Packard Financial Services India. The central bank has imposed a fine of Rs 23.1 lakh on SMFG India Credit Company and Rs 7.9 lakh on Muthoot Vehicle and Asset Finance. SMFG India Credit Company was earlier known as Fullerton India Credit Company. All of them were accused of violating regulatory rules. RBI has clarified that all these actions will not affect the customers.

Action was also taken against HDFC Bank

On September 10, the Reserve Bank imposed a penalty of Rs 1 crore on HDFC Bank for not following its orders and guidelines. The bank was accused of not following RBI’s instructions on interest rates on deposits, keeping recovery agents and customer services. HDFC Bank had given a gift of Rs 250 to depositors for accepting certain deposits. The bank also opened savings deposit accounts of entities that were not eligible. The bank also failed to ensure that customers were not contacted between 7 pm and 7 am.

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