- The RBI’s decision came after a statutory inspection of L&T Finance Limited, which covered its financial position as of March 31, 2021, and March 31, 2022.
- During the inspection, several issues were identified, including the company’s failure to inform its retail borrowers about the risk gradation and the rationale behind different interest rates applied to different borrower categories in loan application forms or sanction letters.
- Additionally, the company did not notify borrowers of changes in penal interest rates when rates were higher than initially communicated.
- It also failed to provide notice of changes in loan terms and conditions when charging an annualized interest rate higher than what was communicated at the time of sanction.
Question:
Q.1 Who imposed a fine on L&T Finance Ltd?a. Securities and Exchange Board of India (SEBI)
b. Ministry of Finance, India
c. Reserve Bank of India (RBI)
d. Insurance Regulatory and Development Authority of India (IRDAI)
