RBI imposes monetary penalty on LIC Housing Finance Limited, Mumbai

Case Brief

By an order dated October 21, 2022, RBI imposed a monetary penalty of ₹5.00 lakh on LIC Housing Finance Limited, Mumbai. The action followed supervisory examination that found the company had failed to create a floating charge in favour of its depositors on part of the assets it invested, and had not registered that charge with the Registrar of Companies. RBI said the penalty was imposed under section 52A(1)(b) read with section 49(3)(aa) of the NHB Act, 1987, after considering the company’s reply and submissions. RBI also clarified that the penalty is based on deficiencies in regulatory compliance and does not pronounce on the validity of any transaction or agreement with customers.