RBI fines LIC Housing Rs 5 lakh for breach of deposit norms

November 1, 2022

The Reserve Bank of India has imposed a penalty of Rs 5 lakh on LIC Housing Finance on October 21 for non-compliance with certain provisions of ‘The Housing Finance Companies (NHB) Directions, 2010’.

The guidelines pertain to deposits of the company and adequate regulatory reporting, RBI said.

NHB had inspected LIC Housing Finance’s financial position as on March 2020 and found that the company had failed to create floating charge in favour of its depositors on a portion of the assets invested by it “in terms of Section 29B of the NHB Act, and non-registration of such charge with the Registrar of Companies”.

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