RBI fined three housing finance companies, action for non-compliance of instructions

Reserve Bank of India tightened action against housing finance companies for non-compliance on various instructions of RBI. Under this, monetary penalty has been imposed on three non-banking financial companies. In the official statement of RBI, which came on Friday, monetary penalty of Rs 5 lakh on Godrej Housing Finance Limited, Rs 5 lakh on Aadhar Housing Finance Limited, and Rs 3.5 lakh on Housing and Urban Development Corporation Limited has been imposed.

This action has been initiated invoking the powers given to RBI under the provisions of Section 52A of the National Housing Bank Act, 1987. According to the RBI, the statutory inspection of these companies was conducted by the National Housing Bank with the reference of their financial position as of March 31, 2022.

The RBI said that based on the non-compliance of the central bank's directions observed and the related correspondence in that regard, a notice was issued to the companies, advising them to show cause as to why they should not be penalized for non-compliance with the RBI directions.