Reserve Bank of India has imposed monetary penalty of Rs 1 crore on private sector lender IDFC First Bank for non-compliance with certain directions issued by regulator on Loans and Advances.
The bank had sanctioned term loans to a public sector undertaking for infrastructure projects without due diligence on the viability and bankability of the projects to ensure revenue streams from the projects were sufficient for repaying debt.
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The repayment / servicing of the said term loans was made out of budgetary resources, RBI said in a statement. In Another regulatory action, RBI imposed a monetary penalty of Rs 49.70 lakh on LIC Housing Finance Ltd for non-compliance with certain provisions of Fair Practices Code.
