The Reserve Bank of India (RBI) fined LIC Housing Finance Ltd. Rs. 5 lakh on Monday for failing to comply with some requirements of the Housing Finance Companies.
This fine has been imposed in accordance with the RBI's authority granted by clause (b) of sub-section (1) of section 52A.
and with Section 49 of the National Housing Bank Act of 1987's Subsection (3), Clause (Aa) (NHB Act).
This action is being taken due to regulatory compliance issues, not to judge the legality of any agreements or transactions the company has with its clients.
After sending notice to the company there is personal hearing and the RBI concluded that the charge of non-compliance was subtantiated.