TestCloud
Prep • Practice • Perform
Log In

RBI Imposes Penalties on SFL, NTB, and USFB for Regulatory Non-Compliance.

Banking & Finance | Dated: 18 Feb 2025

In February 2025, the Reserve Bank of India (RBI) levied penalties on three financial institutions for failing to comply with regulatory guidelines. The affected institutions include Nainital Bank Limited (NTB), Ujjivan Small Finance Bank Limited (USFB), and Shriram Finance Limited (SFL).

🎯 Key Highlights:

  • - Nainital Bank (NTB), based in Uttarakhand, was fined Rs 61.40 lakh for not following RBI's directions on 'Interest Rate on Advances' and 'Customer Service in Banks.'

💡 Other Important Facts:

  • (i) Ujjivan Small Finance Bank (USFB), based in Bengaluru, Karnataka, received a penalty of Rs 6.70 lakh for non-compliance with RBI's directions regarding 'Loans and Advances Statutory and Other Restrictions.'
  • (ii) Shriram Finance Limited (SFL), an NBFC based in Chennai, Tamil Nadu, was fined Rs 5.80 lakh for violations related to 'Know Your Customer' (KYC) guidelines and 'Data Format for Furnishing Credit Information to Credit Information Companies (CICs).'

📚 Test Your Knowledge:

Which organization recently imposed penalties on SFL, NTB, and USFB for regulatory non-compliance?

Correct Answer: RBI

🚀 Quick Recap:

About RBI

  • Governor : Sanjay Malhotra
  • Headquarter : Mumbai