Reserve Bank of India has imposed a monetary penalty of 20 lacs on M/s Shriram City Union Finance Ltd.
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹20 lakh on M/s Shriram City Union Finance Ltd. for violation of directions/orders issued by Reserve Bank of India from time to time.
Reserve Bank of India officials conducted a scrutiny of sample loan accounts of the company during November, 2015.
Reserve Bank of India officials observed that the company has violated various provisions of the Fair Practices Code guidelines issued by the Bank under Section 45 L of the RBI Act, 1934.
Hence, the company was issued a Show Cause Notice (SCN) on August 1, 2016 for imposition of penalty.
The company’s response to the SCN was not found to be satisfactory.
Hence, the company was also accorded a personal hearing by RBI under section 58G (2) of the RBI Act, 1934 on February 14, 2017.
After considering the facts of the case and the company’s reply, as also, personal submissions made during the hearing, Reserve Bank of India came to the conclusion that the violations as observed during scrutiny were substantiated which warranted imposition of monetary penalty on the company.
Accordingly, a penalty of ₹20 lakh has been imposed on the company.
Reserve Bank of India Guidelines on Fair Practices Code for NBFCs can be read here
The fair practices code of M/s Shriram City Union Finance Ltd can be read here.
M/s Shriram City Union Finance Ltd offers the following types of loans :
01) Non corporate small business loans
02) Two wheeler loans
03) Gold loans
04) Personal loans
05) Auto loans
06) Home loans
07) Generator loans – Loans for 5 KVA sets to 2000 KVA generator sets
No, Shriram City Union does not have the option to remit its loans dues through the BHIM APP