Rbi fines: The Reserve Bank of India has imposed a fine of Rs 66.6 lakh on Hong Kong and Shanghai Banking Corporation Limited (HSBC) for not following the instructions related to ‘Know your customer’ (KYC) and ‘interest on deposit’. In addition, IIFL Extreity Finance Limited also imposed a fine of Rs 33.1 lakh for the ‘Non-Banking Financial Company-systematically important non-accounted company and deposits (Reserve Bank) instructions (Reserve Bank) Instructions, 2016’ and Know your customer for not complying with some provisions of the instructions.
In both cases, the RBI said that punishment is based on deficiencies in regulatory compliance and they do not purify the validity of any transactions or agreement made by institutions to their customers.
Individual debt growth rate slowed down to 14.2% in January
In the fortnight ended on 24 January 2025, the growth of individual debt slowed down to 14.2 percent. The main reason for this recession is the weak distribution of auto loan and credit card arrears. The Reserve Bank of India (RBI) gave this information in a report released on Friday. RBI has prepared this report on the basis of data collected from 41 select commercial banks regarding regional allocation of bank loans.
The RBI said that until the fortnight ended on 24 January 2025, non-food bank loans increased by 12.5 percent on an annual basis, compared to 16.2 percent in the same fortnight last year. According to the report, the individual loan section recorded a 14.2 percent increase in the loan by a fortnight ended on 24 January 2025, compared to 18.2 percent a year ago. The main reason for this was the decline in growth rate in ‘other individual loans’, ‘auto debt’ and ‘credit card arrears’ segment.
It further states that the loan for agriculture and allied activities recorded a 12.2 percent increase till the end of January 24, 2025, compared to 20 percent in the same fortnight last year. The industry registered an increase of 8.2 percent in bank loans by this fortnight, compared to 7.5 percent in the same fortnight last year.
