The RBI has imposed penalties on JM Financial Products and Experian India for failing to comply with regulatory requirements.

Banking & Finance

The Reserve Bank of India (RBI) has imposed monetary penalties on two companies based in Mumbai for not following regulatory guidelines:


      - JM Financial Products Limited (JMFL) has been fined Rs 3.1 lakh for violating rules related to non-banking financial companies (NBFCs), especially concerning systemically important non-deposit-taking and deposit-taking companies.

      - The penalty was imposed after the RBI found that the company did not disclose a key related-party transaction in its annual report.

      - This was discovered after an inspection of the company’s financial position as of March 31, 2023, and a review of its response to a show-cause notice.

Main Point :-   (i) Experian Credit Information Company of India Private Limited (ECICI) has been fined Rs 2 lakh for not following certain provisions of the Credit Information Companies (Regulation) Act, 2005 (CICRA) and the Credit Information Companies (CIC) Rules, 2006.

      (ii) The RBI clarified that these penalties were due to regulatory issues and do not affect the validity of any agreements or transactions the companies have with their customers.

(iii) Additionally, the RBI announced that new Rs 100 and Rs 200 banknotes will be released soon, featuring the signature of the new Governor, Sanjay Malhotra.

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