Recorded RBI impact
Fine: Rs 5.00 L
Monetary penalty · Fresh imposition
Published by RBI
2 Feb 2024
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹5.00 lakh on Bajaj Housing Finance Limited, Pune, by order dated January 29, 2024. RBI said the company violated provisions of the Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021 by failing to obtain prior written permission for a change in management that resulted in a change of more than 30% of its directors, excluding independent directors. The penalty was imposed after RBI considered the company’s reply to the show-cause notice, additional submissions, and oral submissions at the personal hearing, and found the charge substantiated.
Why RBI Acted
RBI imposed a monetary penalty under section 52A read with section 49 of the National Housing Bank Act, 1987 after statutory inspection and supervisory review found that Bajaj Housing Finance Limited had not taken prior written permission of RBI for a change in management that led to a change of more than 30% of its directors, excluding independent directors. The company replied to the show-cause notice and made additional oral/written submissions, but RBI concluded the non-compliance was substantiated and warranted penalty.
Operating Impact
The company must absorb the ₹5 lakh penalty; no suspension or operating restriction is described in this release. The action is limited to the compliance lapse identified by RBI and does not by itself alter customer contracts or transactions.
Regulatory Basis
- clause (b) of sub-section (1) of section 52A read with clause (aa) of sub-section (3) of section 49 of the National Housing Bank Act, 1987
Action Facts
- Primary Impact
- Fine: Rs 5.00 L
- Order Date
- 29 Jan 2024
- Effective From
- 29 Jan 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC