The Reserve Bank of India (RBI) on Thursday said that it imposed penalties on two entities: JM Financial Products and Experian Credit Information Company of India for lapses in regulatory compliance.
In a press release, the RBI announced a penalty of Rs 3.1 lakh on JM Financial Products Limited for failing to comply with certain provisions related to “non-banking financial company – systemically important non-deposit taking company and deposit-taking company” regulations.
JM Financial Products did not disclose a material related party transaction in its Annual Report, the central bank stated.
Similarly, a fine of Rs 2 lakh was imposed on Experian Credit Information Company of India Private Limited for violations of specific provisions under the Credit Information Companies (Regulation) Act, 2005, and the Credit Information Companies Rules, 2006.
According to the RBI, Experian did not send intimation regarding the discrepancy in respect of credit information to the credit institutions by the seventh day from the date of receipt of requests thereof and neither corrected credit information nor intimated the borrowers regarding its inability to do so, within the stipulated period of 30 days of receipt of requests for correction.
The central bank clarified that the penalties were levied due to regulatory shortcomings and do not impact the validity of any transactions or agreements these companies have entered into with their customers.
