RBI imposes monetary penalty on BNP Paribas

The Reserve Bank of India (RBI) fined BNP Paribas ₹31,80,000 for not complying with its guidelines on interest rates for loans. A 2023 inspection revealed the bank did not use a uniform external benchmark for certain loans. Despite BNP Paribas' responses and hearings, RBI confirmed the violation and imposed the penalty. This action focuses on regulatory non-compliance and does not affect customer transactions. RBI may take further actions if necessary.

RBI imposes monetary penalty on Muthoot Vehicle & Asset Finance Limited

The RBI has fined Muthoot Vehicle & Asset Finance ₹7,90,000 for not following certain rules. An inspection found that the company:

• Didn’t post its Liquidity Coverage Ratio on its website.
• Failed to submit data on gold loan customers to credit agencies.
• Didn’t provide loan details in local languages to vehicle loan borrowers.

The fine is for breaking regulations, not for any specific deals with customers.(Press Release: 2024-2025/1109)

Change in Public Holiday under Negotiable Instruments Act

The Government of Maharashtra has declared September 18, 2024, as a public holiday, canceling the previously announced holiday on September 16, 2024.
As a result:

• No transactions in Government securities, foreign exchange, money markets, or rupee interest rate derivatives will occur on September 18. These will be settled on September 19.
• Markets will operate as usual on September 16.
• Settlements for Government securities auctions from September 13 and 17 will happen on September 17 and 19, respectively.
• Liquidity facilities (SDF and MSF) set for September 17 will now reverse on September 16, with usual availability thereafter.

The fine is for breaking regulations, not for any specific deals with customers.(Press Release: 2024-2025/1109)(Press Release: 2024-2025/1114)