Categories: Banking

RBI Imposes ₹2.33 Cr Monetary Penalty On Spandana Sphoorty Financial

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹2.33 crore on Hyderabad-based Spandana Sphoorty Financial Ltd for its failure to adhere to the pricing of credit guidelines for Non-Banking Financial Company – Micro Finance Institutions (NBFC-MFIs).

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Reason For This Action:

RBI had conducted statutory inspections of the company, a NBFC- MFI, with reference to its financial position as on March 31, 2019 and March 31, 2020. Examination of the Risk Assessment Report, Inspection Reports, supervisory letters and all related correspondence revealed that the company’s failure to adhere to pricing of credit guidelines for NBFC-MFI, according to the central bank’s statement.  The central bank observed that its action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers.

RBI said the penalty has been imposed in exercise of powers vested in it under the provisions of the Reserve Bank of India Act, 1934.

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Piyush Shukla

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