RBI fines JM Financial Products Ltd, Experian Credit Information Company

New Delhi: The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 3.10 lakh on JM Financial Products Limited over non-compliance.

The penalty was imposed for not complying with certain provisions of the ‘Master Direction – Non-Banking Financial Company – Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016’ issued by the Central Bank.

The statutory inspection of the company was conducted by RBI with reference to its financial position as on March 31, 2023.

“Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions,” said the RBI.

After considering the company’s reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI found that the following charge against the company was sustained, warranting imposition of monetary penalty:

“This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the company,” said the bank.

Meanwhile, the RBI imposed a monetary penalty of Rs 2 lakh on Experian Credit Information Company of India for non-compliance with certain provisions of the Credit Information Companies (Regulation) Act, 2005 [CIC (R) Act] and the Credit Information Companies Rules, 2006 [CIC Rules].

After considering the company’s reply to the notice and oral submissions made by it during the personal hearing, the RBI found the company did not send intimation regarding discrepancy in respect of credit information to the credit institutions by the seventh day from the date of receipt of requests thereof.

The company neither updated/corrected the credit information nor intimated the borrowers regarding its inability to do so, within the stipulated period of 30 days of receipt of requests for updation/correction, according to the RBI.

–IANS