RBI has imposed a fine on 2 non-banking finance companies. Both are accused of ignoring the rules. The central bank has also issued a statement in this regard. Let’s know what is the reason behind this action?
So far in March, the Reserve Bank of India has taken strict action against many banks and NBFCs. Monetary fines have been imposed on them. RBI’s action has come to the fore once again before Holi. The central bank has imposed a monetary fine of lakhs on two non-banking finance companies. RBI had issued orders related to penalty on both NBFCs on March 3, 2025.
RBI has imposed a monetary fine of Rs 3.10 lakh on JM Financial Products Limited and Rs 2 lakh on Experian Credit Information Company of India Private Limited. Both the companies are accused of violating the rules.
These allegations against the companies
JM Financial Products Limited did not disclose any related party transactions in its annual report. At the same time, Experian Credit Information Company of India Private Limited did not send information till the seventh day from the date of receipt of the request of the credit institutions regarding the discrepancy in the credit information. The company neither updated or corrected the credit information nor informed the borrowers about its inability to do so within the prescribed period of 30 days of receipt of the request for update/correction.
RBI had issued a show cause notice
During an inspection conducted in March 2023, ignorance of the rules by the companies was detected. After this, RBI had issued a show cause notice to the NBFC. After receiving the response to the notice and confirming the allegations after further investigation, it was decided to impose a monetary penalty. However, this action will not affect the transactions or agreements being done by the companies.
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