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Fine on City Union Finance and Hinduja Leyland Finance by RBI
April 14, 2017
A penalty of Rs. 20 lakh and Rs. 5 lakh has been imposed on City Union Finance and Hinduja Leyland Finance respectively as a consequence of unfair practices.
The Reserve Bank of India, had a look at the sample accounts of both these organizations and after finding fair practice code guidelines violation, a notice was sent to both of these, The response wasn’t appropriate enough for the RBI, and hence the penalty.
As per RBI, Hinduja Leyland Finance had a non-transparent interest charging and communication with its customers.
The scrutiny for City Union Finance was held during November 2015 and for Hinduja Leyland Finance, it was in January 2016.
