The Reserve Bank of India has imposed a penalty of Rs 5 lakh on LIC Housing Finance on October 21 for non-compliance with certain provisions of ‘The Housing Finance Companies (NHB) Directions. The RBI in exercise of its authority from the National Housing Bank Act of 1987 imposed the fine on the LIC Housing Finance, RBI said in a statement here recently. After considering the company’s reply to the notice, examination of additional submissions made by it and oral submissions made during the personal hearing, the RBI came to the conclusion that the charge of non-compliance with the aforesaid statutory directions was substantiated and warranted imposition of monetary penalty,” the statement added. However, it said that the agreements reached by the LIC Housing Finance with the customers will not be affected by the action of the RBI
