The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 8.80 lakh on Power Finance Corporation (PFC) for non-compliance with certain provisions of the RBI’s directions on ‘Liquidity Risk Management Framework for Non-Banking Financial Companies and Core Investment Companies’.
This penalty has been imposed in exercise of powers conferred on RBI under the provisions of clause (b) of sub-section (1) of section 58G read with clause (aa) of sub-section (5) of section 58B of the Reserve Bank of India Act, 1934 (RBI Act).
This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers.
Power Finance Corporation is central PSU under Ministry of Power and India's leading NBFC.
