M/s Shriram City Union Finance Ltd hit with INR 20 lacs monetary penalty

-

      
              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


Comments

Post a Comment

Popular posts from this blog

CERTIFICATE EXAMINATION IN INTERNATIONAL TRADE FINANCE

-
Image
          This certification is essential for all members of a Bank Trade Finance Department.   The syllabus covers key aspects required by team members to effectively discharge their duties. Trade Finance is one of the traditional forms of bank finance in India. In view of reforms and liberalisation, this has gained a new significance.   Many of the practices in trade finance have evolved over a period of time and some are guided by Ministry of Commerce and Reserve Bank of India, besides WTO and International Chamber of Commerce through UCPDC 600. With the increase in the volume of trade both domestically and internationally, there is a need for trade finance professionals from banks as well as corporates. The Objectives of this IIBF Examination is as under:   (i) To provide candidates with competencies required to function as trade finance practitioners. (ii) To enable candidates to possess the ...
Read more

IIBF-Certificate Examination in Foreign Exchange Facilities for Individuals

-
          The primary objective this IIBF course is to make the branch officials familiar with the FEMA provisions that impact their day to day functioning at the branch level.     This exam is being introduced pursuant to the recommendation of a committee of RBI.           Normally foreign exchange transactions pertaining to individuals are handled at branches only and are not referred to specialised forex cells.           The course covers ‘Foreign Exchange Facilities for individuals under FEMA1999’ RBIs FAQs’ on Forex Facilities for Residents (Individuals) (updated up to November 21, 2014) For full details refer to Reserve Bank of India website: Introduction : The legal framework for administration of foreign exchange transactions in India is provided by the Foreign Exchange Management Act, 1999. Un...
Read more

IIBF introduces Self-Paced E-learning courses (SPeL) for its two certificates

-
Image
          Indian Institute of Banking Finance (IIBF) has taken a quantum leap in disseminating knowledge to its members and non-members.           IIBF in April 2019, introduced the Self-Paced E-learning courses (SPeL) concept for banking enthusiasts to be familiar with banking concepts.           In the first stage, IIBF has launched   two certificate courses i.e 1. Digital Banking and 2. Ethics in Banking.           The objective of this self-paced e-learning mode are as follows: • Participants can make the best use of his or her time, in order to meet his or her learning objectives. • Participants can access the course   anywhere/anytime with an internet connection. • Participants need not travel to give their examinations. It saves time and money of the participants. ...
Read more