MUMBAI: The RBI on Friday imposed a fine of Rs 2.5 crore on L&T Finance for non-compliance with certain norms related to NBFCs.
After examining reports after regulatory inspection of the company, RBI said that the NBFC had not disclosed to its retail borrowers in the loan application form the gradation of risk and the reason for charging different interest rates to different categories of borrowers.
It also failed to inform borrowers about the change in penalty rate as the rate charged was higher than what was communicated at the time of penalty, RBI said.
After examining reports after regulatory inspection of the company, RBI said that the NBFC had not disclosed to its retail borrowers in the loan application form the gradation of risk and the reason for charging different interest rates to different categories of borrowers.
It also failed to inform borrowers about the change in penalty rate as the rate charged was higher than what was communicated at the time of penalty, RBI said.
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