Case Brief
RBI, by order dated February 6, 2024, imposed a monetary penalty of ₹8.80 lakh on Power Finance Corporation Limited, New Delhi. The penalty was imposed for non-compliance with RBI’s directions on the Liquidity Risk Management Framework for NBFCs and CICs. During statutory inspection, RBI found that the company had not maintained the prescribed Liquidity Coverage Ratio of 60% as on March 31, 2022 because ineligible assets were included as High Quality Liquid Assets for the computation of the ratio. After notice, reply, additional submissions, and oral hearing, RBI concluded that the non-compliance was substantiated and warranted penalty under the RBI Act.
Action Snapshot
- Primary Impact
- Fine: Rs 8.80 L
- Entity Type
- NBFC
- Location
- New Delhi