RBI imposes Rs 28.30 lakh fine on SG Finserve

The Reserve Bank of India on Monday said it has imposed a penalty of Rs 28.30 lakh on SG Finserve Limited, formerly known as Moongipa Securities, for non-compliance with specific conditions under which the company was issued the Certificate of Registration (CoR).

The company's financial statements for FY23 revealed inter alia, non-compliance with the specific conditions of the CoR.

"The company had accepted public funds and extended loans in violation of the specific conditions of the CoR issued to it," the RBI said in a statement.

The RBI has also imposed a penalty of Rs 14 lakh on Arunachal Pradesh Rural Bank for non-compliance with certain directions on 'Strengthening of Prudential Norms - Provisioning Asset Classification and Exposure Limit' and 'Know Your Customer' (KYC).

Besides, penalties have been imposed on three other cooperative banks for contravention of certain norms.

The banks are Jilla Sahakari Kendriya Bank Maryadit, Bhind, Madhya Pradesh; The Urban Co-operative Bank Ltd, Dharangaon, Maharashtra, and Sri Kalahasti Co-operative Town Bank Ltd, Andhra Pradesh.

In each case, the RBI said penalties are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by entities with their customers.